The following transactions apply to Walnut Enterprises for Year 2: 1. Paid the balance of the sales tax due for Year 1. 2. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Repaid the principal of the note and applicable Interest on April 1, Year 2. 4. Paid $102,500 of other operating expenses during the year. 5. Paid the sales tax due on $185,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. Required a. Organize the transaction data in accounts under an accounting equation. b-1. Prepare an Income statement for Year 1 and Year 2 b-2. Prepare a statement of changes in stockholders' equity for Year 1 and Year 2 b-3. Prepare a balance sheet for Year 1 and Year 2 b-4. Prepare a statement of cash flows for Year 1 and Year 2. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B1 Year Req B1 Year Req B2 Year Req B2 Year Req B3 Year Req B3 Year Req B4 Year Req B4 Year 1 2 1 2 1 2 1 2 Organize the transaction data in accounts under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Leave the cell blank if there is no effect on the "Account Titles for Retained Earnings". Not all cells will require entry.) WALNUT ENTERPRISES Effect of Events on the General Ledger Year 1 and Year 2 Liabilities Assets = + Event Cash = Sales Tax Payable Interest Payable Notes Payable + Stockholders' Equity Retained Earnings Account Titles for Retained Earnings Year 1 1. 50,000 = + + 50,000 + 2. 137,800 = 7,800 + + + 130,000 Service revenue 3. (62,000)= + + + (62,000) Operating expenses 4. (6,600) = (8,600) + + + 5. |= + Bal. 119,200 |= 1,200 + 2,250+ 2,250 + + (2,250) Interest expense 50,000 + 65,750 Year 2 Beg. 119,200 - 1,200+ 2,250+ 50,000+ 65,750 bal. 1. (1,200) = (1,200) + + + 2. 213,080 - 12,060 + + + 201,000 Service revenue . (50,000) x (50,000) 3b. (3,000) (2.250) 4. (102,500) = + + + (750) (102,500) Interest expense Operating expenses 5. (11,100) = (11,100) + + + End. 164,460 = 960 + 0 + 0 + 163,500 bal.