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The following transactions apply to Park Company for Year 1: Received $31,000 cash from the issue of common stock. Purchased inventory on account for $143,000.
The following transactions apply to Park Company for Year 1: Received $31,000 cash from the issue of common stock. Purchased inventory on account for $143,000. Sold inventory for $173,500 cash that had cost $106,500. Sales tax was collected at the rate of 5 percent on the inventory sold. Borrowed $21,600 from First State Bank on March 1, Year 1. The note had a 5 percent interest rate and a one-year term to maturity. Paid the accounts payable
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