The following transactions apply to Ozark Sales for Year $1$

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

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

Sold equipment for $$199,000$ cash $($not including sales tax$).$ Sales tax of $6$ percent is collected when the merchandise is sold. The merchandise had a cost of $$124,000.$

Provided a six$-$month warranty on the equipment sold. Based on industry estimates, the warranty clalms would amount to $5$ percent of sales.

Pald the sales tax to the state agency on $$149,000$ of the sales.

On September $1,$ Year $1,$ borrowed $$19,000$ from the local bank. The note had a $5$ percent Interest rate and matured on March $1,$ Year $2.$

Pald $$5,400$ for warranty repalrs during the year.

Pald operating expenses of $$54,500$ for the year.

Pald $$124,900$ of accounts payable.

Recorded accrued interest on the note Issued in transaction no$.6.$

equired

Show the effects of these transactions on the financial statements using a horizontal statements model. $($Use a $+$ to Indicate increase a $-$ for decrease. In the Statement of Cash Flows column, Indicate whether the Item Is an operating activity $($OA$),$ Investing activity A$),$ or financing activity $($FA$).$ Columns for events that have no effect on any of the elemepts should be left blank.$)$

ote: Not all cells will require an Input.

Prey

$3$ of $6$

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