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

The business was started when the company received $$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 claims would amount to $5$ percent of sales.

Paid 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 $2.$

Paid $$5,400$ for warranty repairs during the year.

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

Paid $$124,900$ of accounts payable.

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

Required

a$.$ Show the effects of these transactions on the financial statements using a horizontal statements model. $($Use a $+$ to indicate increa or a $-$ for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).$ Columns for events that have no effect on any of the elements should be left blank.$)$

Note: Not all cells will require an input.

$\backslash$table$[[$Effect of Transactions on Financial Statements$],[$Event$,$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of Cash$],[$Flows$]]],[$Assets$,=,$Liabilities,$+,$Equity,Revenue,Expenses,$=$ Net Income$]]$

$($IA$),$ or financing activity $($FA$).$ Columns for events that have no effect on any of the elements should be left blank.$)$ Note: Not all cells will require an input.

$\backslash$table$[[$Event$,$Effect of Transactions on Financial Statements$],[$Balance Sheet,Income Statement,$\{$

$\backslash$table$[[$Statement of Cash$],[$Flows$]]\}],[$Assets$,=,$Liabilities,$+,$Equity,Revenue,$-,$Expenses,$=,$Net Income$],[1.,+,=,,+,+,,-,,=,,+,$FA$],[2.,,=,,+,,,-,,=,,,],[3a,,=,,+,,,-8,,=,,,],[3b,,=,,+,,1,-,,=,,,],[4.,,=,,+,,,-,,=,,,],[5.,,=,,+,,,-,,=,,,],[6.,,=,,+,,,-,,=,,,],[7.,,=,,+,,,-,,=,,,],[8.,,=,,+,,,-,,=,,,],[9.,,=,,+,,,-,,=,,,],[10.,,=1,,+,,,-,,=,$r$,,]]$