The following transactions apply to Ozark Sales for 2018:

The business was started when the company received $49,000 from the issue of common stock.

Purchased equipment inventory of $174,500 on account.

Sold equipment for $193,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $118,500.

Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales.

Paid the sales tax to the state agency on $143,500 of the sales.

On September 1, 2018, borrowed $19,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, 2019.

Paid $5,600 for warranty repairs during the year.

Paid operating expenses of $55,000 for the year.

Paid $124,700 of accounts payable.

Recorded accrued interest on the note issued in transaction no. 6.

Horizohtl Statements Model Balance Sheet Income Statement Assets Liabilities +Stockholders' Equity Ne Notes Stock Payable Retained Revenue-Expense Earnings Common+ Merchandise AccountsSales TaxWarrantyInterest Payable ash + Inventory Payable Payable Payable 49,000+ 74,500+ 49,000+ (174,500) 23,500+ (174,500) 0+49,000+