the following transactions apply to ozark sales for year 1:

1. The business was started when the company received $49,500 from the issue of common stock.

2. Purchased equipment inventory of $176,000 on account.

3. Sold equipment for $202,000 cash(not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $127,000.

4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales.

5. Paid the sales tax to the state agency on $152,000 of sales.

6. On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2.

7. Paid $5,800 for warranty repairs during the year.

8. Paid operating expenses of $55,500 for the year.

9. Paid $124,000 of accounts payable

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

Required:

a. Record the given transactions in a horizontal statements model.

b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1

c. What is the total amount of current liabilities at December 31, Year 1?