The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $48,500 from the issue of common stock. 2. Purchased merchandise inventory of $174,500 on account. 3. Sold merchandise for $195,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $120,000. 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $145,000 of the sales. 6. On September 1, Year 1 , borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,500 for warranty repairs during the year. 8. Paid operating expenses of $53,000 for the year. 9. Paid $124,300 of accounts payable. 10. Recorded accrued interest on the note issued in transaction number 6 . Journal entry worksheet B K The business was started when the company received $48,500 from the issue of common stock. Record the transaction. Note: Enter debits before credits. Journal entry worksheet Purchased merchandise inventory of $174,500 on account. Record the transaction. Note: Enter debits before credits. Sold merchandise for $195,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. Record the transaction. Note: Enter debits before credits. The merchandise sold had a cost of $120,000. Record the transaction. Note: Enter debits before credits. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. Record the transaction. Note: Enter debits before credits. Paid the sales tax to the state agency on $145,000 of the sales. Record the transaction. Note: Enter debits before credits. On September 1 , Year 1 , borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. Record the transaction. Note: Enter debits before credits. Paid $5,500 for warranty repairs during the year. Record the transaction. Note: Enter debits before credits. Recorded accrued interest on the note issued in transaction number 6 . Record the transaction. Note: Enter debits before credits. Post the transactions to the appropriate T-accounts. (Round your answers to the nearest dollar amount.) Prepare the income statement for Year 1. (Round your answers to the nearest dollar.) OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 d. What is the total amount of current liabilities at December 31 , Year 1 ? (Rc