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.) c. Prepare a balance sheet, statement of changes in stockholders' equity, income statement, and statement of cash flows for Year 1. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.) WALNUT ENTERPRISES Income Statement For the Year Ended December 31, Year 1 Expenses Total operating expenses 0 $ WALNUT ENTERPRISES Statement of Changes of Stockholders' Equity For the Year Ended December 31, Year 1 Common stock Beginning retained earnings 0 + Total stockholders' equity $ 0 WALNUT ENTERPRISES Balance Sheet As of December 31, Year 1 Assets $ 0 Total assets Liabilities + 0 Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 0 WALNUT ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities: $ 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 $ Journal entry worksheet 1 2 > Record the closing entry for service revenue. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet