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The following transactions apply to Ozark. Sales for Year 1 : 1. The business was started when the company received $49.000 from the issue of

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The following transactions apply to Ozark. Sales for Year 1 : 1. The business was started when the company received $49.000 from the issue of common stock. 2. Purchased merchandise inventory of $177,000 on account. 3. Sold merchandise for $191,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $116.500. 4. Provided a six-month warranty on the merchandise 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 $141,500 of the sales 6. On September 1, Yeat 1, borrowed $19,000 from the local bank. The note had a 7 percent interest rate and matured on March 1. Year 2 7. Paid $5.700 for warfanty repairs duting the year. 8. Pald operating expenses of $55,000 for the year. 9. Pald $124,900 of accounts payable. 10. Recorded acciued interest on the note issued in transaction number. 6 . The following transactions apply to Ozark Sales for Year 1 . 1. The business was started when the company recelved $49,000 from the issue of common stock. 2. Purchased merchandise inventory of $177,000 on account. 3. Sold merchandise for $191,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $116,500. 4. Provided a six-month wartanty on the merchandise sold. Based on industry estimates, the warranty claims wouid amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $141,500 of the sales 6. On September 1, Year 1, borrowed $19.000 from the local bank. The note had a 7 percent interest rate and matured on March 1. Year 2 7. Poid $5,700 for wamanty repairs during the year. 8. Paid operating expenses of $55.000 for the year. 9. Paid $124,900 of accounts payable. 10. Recorded accrued interest on the note issued in transaction number 6 Required 0. Show the effect of these transoctions on the financial statements using a horizontal statements model, The ferst transaction is recorded as an example (Use + for increose, - for decreose, and leove blenk for not affected. In the Stotement of Cash Fiows column, indicote whether the item is on operating activity (OA), investing octivity (IA), finencing octlivity (FA), or not affected (leove blank)

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