Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 6 percent is collected on all sales.

1. Book sales, not including sales tax, for Year 1 amounted to $271,000 cash.
2. Cash sales of miscellaneous items in Year 1 were $147,000, not including tax.
3. Cost of goods sold was $208,000 for the year.
4. Paid $132,000 in operating expenses for the year.
5. Paid the sales tax collected to the state agency.

Required: a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. Prepare the journal entries for the preceding transactions. c. What is Vail Book Marts net income for the year?

outline for parts a, b, and c pictured above^

Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $1,500 of cash revenue. 2. Borrowed $2,500 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1 , Year had a one-year term and an 7 percent annual interest rate. Required: a. What is the amount of interest payable at December 31 , Year 1 ? b. What is the amount of interest expense in Year 1 ? c. What is the amount of interest paid in Year 1 ? d. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. The first transaction has been recorded as an example. Complete this question by entering your answers in the tabs below. a. What is the amount of interest payable at December 31 , Year 1 ? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) b. What is the amount of interest expense in Year 1 ? (Do not round intermediate calculations, Round your answer to the nearest dollar amount.) c. What is the amount of interest paid in Year 1 ? Complete this question by entering your answers in the tabs below. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. The firs (Indicate whether the event increases (+), decreases (), or does not affect (leave blank) each element of the financial statements, In the Sta cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not affected (leave blank).)