The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $41,500 cash from the issue of a short-term note with a 4 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $119,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Paid $72,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $99,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: 1. Paid the balance of the sales tax due for Year 1. 2. Received $144,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Repaid the principal of the note and applicable interest on April 1. Year 2. 4. Paid $85,000 of other operating expenses during the year. 5. Paid the sales tax due on $119,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. (For all requirements, round your intermediate and final answers to the nearest whole dollar amount.) e. Prepare a post-closing trial balance. WALNUT ENTERPRISES Post Closing Trial Balance As of December 31, Year 1 Account Titles Debit Credit Totals $ 0 $ f. Repeat Requirements a through e for Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.) View transaction list Journal entry worksheet Paid the balance of the sales tax due for Year 1. Note: Enter debits before credits. Event General Journal Debit Credit 01 Cash Sales Tax Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal Interest Payable Notes Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Service Revenue Operating Expenses Beg. Bal. Beg. Bal. Interest Expense Retained Earnings Beg. Bal. Beg. Bal End. Bal End, Bal. WALNUT ENTERPRISES Income Statement For the Year Ended December 31, Year 2 Expenses 0 Total operating expenses 0 WALNUT ENTERPRISES Statement of Changes of Stockholders' Equity For the Year Ended December 31, Year 2 Common stock 0 Total stockholders' equity $ 0 WALNUT ENTERPRISES Balance Sheet As of December 31, Year 2 Assets Total assets 0 Liabilities 0 Total liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 WALNUT ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: 0 Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 $ 0 Ending cash balance 2 Record the closing entry for service revenue. Note: Enter debits before credits General Journal Debit Credit Event 1 Record entry Clear entry View general Journal Required information 1 Record the closing entry for expenses. Note: Enter debits before credits Event General Journal Debit Credit 2 Record entry Clear entry View general Journal + Cash Sales Tax Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Service Revenue Operating Expenses Beg. Bal. Beg. Bal. 5 End. Bal. End. Bal. Interest Expense Retained Earnings Beg. Bal. Beg. Bal. End. Bal. End. Bal. WALNUT ENTERPRISES Post Closing Trial Balance As of December 31, Year 2 Account Titles Debit Credit Totals $ 0 $ 0