Required informationExercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4[The following information applies to the questions displayed below.]The following transactions apply to Ozark Sales for Year 1:1. The business was started when the company received $48,500 from the issue of common stock.2. Purchased equipment inventory of $175,000 on account.3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise issold. The merchandise had a cost of $128,000.4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amountto 4 percent of sales.5. Paid the sales tax to the state agency on $153,000 of the sales.6. On September 1, Year 1, borrowed $19,500 from the local bank. The note had a 5 percent interest rate and matured onMarch 1, Year 2.7. Paid $5,700 for warranty repairs during the year.8. Paid operating expenses of $53,500 for the year.9. Paid $124,100 of accounts payable.10. Recorded accrued interest on the note issued in transaction no. 6.Exercise 9-8A (Algo) Part cc. What is the total amount of current liabilities at December 31, Year 1?Note: Round your answer to the nearest dollar amount.Total current liabilities

Current liabilities refer to the debts and obligations that a company is required to pay or settle…

1. The business was started when t 2. Purchased equipment inventory 3. Sold equipment for $203,000 ca sold. The merchandise had a cos 4. Provided a six-month warranty or to 4 percent of sales. 5. Paid the sales tax to the state age 6. On September 1, Year 1, borrowe

1. The business was started when t 2. Purchased equipment inventory 3. Sold equipment for $203,000 ca sold. The merchandise had a cos 4. Provided a six-month warranty or to 4 percent of sales. 5. Paid the sales tax to the state age 6. On September 1, Year 1, borrowe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $48,000 from the issue of common stock. Purchased merchandise inventory of $176,000 on account. Sold merchandise for $202,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $127,000. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. Paid the sales tax to the state agency on $152,000 of the sales. On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2. Paid $6,000 for warranty repairs during the year. Paid operating expenses of $55,500 for the year. Paid $124,300 of accounts payable. Recorded accrued interest on the note issued in transaction number 6. b1. Prepare the journal entries for the preceding transactions.b2. Post…
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