Tollowing selected transactions were taken from the books of Ripley Company for Year 1 1. On February 1 Year 1, borrowed $56,000 cash from the local barik. The note had a 5 percent interest rate and was due on June 1. Year 1 2. Cash sales for the year amounted to $235.000 plus sales tax at the rate of 7 percent 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 4 percent of sales. 4. Paid the sales tax to the state sales tax agency on $180,000 of the sales 5. Pald the note due on June 1 and the related interest 6. On November 1. Year 1, borrowed $40,000 cash from the local bank. The note had a 9 percent interest rate and a one-year term to 7. Paid $3,800 in warranty repairs 8. A customer has filed a lawsuit against Ripley for $100,000 for breach of contract. The company attorney does not believe the suit has merit maturity Required a. Answer the following questions: 1. What amount of cash did Ripley pay for interest during Year 12 2. What amount of interest expense is reported on Ripley's income statement for Year 1? 3. What is the amount of warranty expense for Year 12 b. Post the liabilities transactions to T-accounts and prepare the current liabilities section of the balance sheet at December 31, Year 1. c. Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown next. Use + for increase. - for decrease, and NA for not affected. In the Cash Flow column indicate whether the item is an operating activity (OA). investing activity (IA), or financing activity (FA) or not affected (NA) The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below. Required Al Required A2 Required A) Required BIT Required 82 Account Bal Sheet Required What amount of cash did Ripley pay for interest during Year 1? (Round your answer nearest dollar amount) Cash paid for interest Required A2 > Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1T Required B2 Account Bal Sheet Required What amount of interest expense is reported on Ripley's income statement for Year 12 (Round your answer nearest dallar amount.) Interest expenso Complete this question by entering your answers in the tabs below. Required Al Required A2 Required A3 Required B1 T Account Required B2 Bal Sheet Required What is the amount of warranty expense for Year 1? Warranty expense Required A1 Required A2 Required A3 Required B1 T Required B2 Account Bal Sheet Required C Post the liabilities transactions to T-accounts at December 31, Year 1. Interest Payable Sales Tax Payable Beg Bal. Beg Bal End. Bal End Bal Warranty Payable Notes Payable Beg. Bal Beg Bal End. Bal End Bal Required A1 Required A2 Required A3 Required B1 T RequireB2 Account Bal Sheet Required C Prepare the current liabilities section of the balance sheet at December 31, Year 1. (Round your answers nearest dollar amount.) RIPLEY COMPANY Balance Sheet (partial) As of December 31, Year 1 Current liabilities Total current liabilities Required A1 Required AZ Required A3 Required 01 T Required B2 Account Bal Sheet Required Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown nextUse for increase, - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing acti (FA) or not affected (NA). The first transaction has been recorded as an example. Show less Liabilities Equity NA Revenue NA Expense NA Net Income NA Cash Flow FA Event 1 2 3 4 5 6 7 Tollowing selected transactions were taken from the books of Ripley Company for Year 1 1. On February 1 Year 1, borrowed $56,000 cash from the local barik. The note had a 5 percent interest rate and was due on June 1. Year 1 2. Cash sales for the year amounted to $235.000 plus sales tax at the rate of 7 percent 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 4 percent of sales. 4. Paid the sales tax to the state sales tax agency on $180,000 of the sales 5. Pald the note due on June 1 and the related interest 6. On November 1. Year 1, borrowed $40,000 cash from the local bank. The note had a 9 percent interest rate and a one-year term to 7. Paid $3,800 in warranty repairs 8. A customer has filed a lawsuit against Ripley for $100,000 for breach of contract. The company attorney does not believe the suit has merit maturity Required a. Answer the following questions: 1. What amount of cash did Ripley pay for interest during Year 12 2. What amount of interest expense is reported on Ripley's income statement for Year 1? 3. What is the amount of warranty expense for Year 12 b. Post the liabilities transactions to T-accounts and prepare the current liabilities section of the balance sheet at December 31, Year 1. c. Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown next. Use + for increase. - for decrease, and NA for not affected. In the Cash Flow column indicate whether the item is an operating activity (OA). investing activity (IA), or financing activity (FA) or not affected (NA) The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below. Required Al Required A2 Required A) Required BIT Required 82 Account Bal Sheet Required What amount of cash did Ripley pay for interest during Year 1? (Round your answer nearest dollar amount) Cash paid for interest Required A2 > Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1T Required B2 Account Bal Sheet Required What amount of interest expense is reported on Ripley's income statement for Year 12 (Round your answer nearest dallar amount.) Interest expenso Complete this question by entering your answers in the tabs below. Required Al Required A2 Required A3 Required B1 T Account Required B2 Bal Sheet Required What is the amount of warranty expense for Year 1? Warranty expense Required A1 Required A2 Required A3 Required B1 T Required B2 Account Bal Sheet Required C Post the liabilities transactions to T-accounts at December 31, Year 1. Interest Payable Sales Tax Payable Beg Bal. Beg Bal End. Bal End Bal Warranty Payable Notes Payable Beg. Bal Beg Bal End. Bal End Bal Required A1 Required A2 Required A3 Required B1 T RequireB2 Account Bal Sheet Required C Prepare the current liabilities section of the balance sheet at December 31, Year 1. (Round your answers nearest dollar amount.) RIPLEY COMPANY Balance Sheet (partial) As of December 31, Year 1 Current liabilities Total current liabilities Required A1 Required AZ Required A3 Required 01 T Required B2 Account Bal Sheet Required Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown nextUse for increase, - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing acti (FA) or not affected (NA). The first transaction has been recorded as an example. Show less Liabilities Equity NA Revenue NA Expense NA Net Income NA Cash Flow FA Event 1 2 3 4 5 6 7