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 $48,000 from the issue of common stock.2. Purchased merchandise inventory of $174,500 on account.3. Sold merchandise for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandiseis sold. The merchandise had a cost of $115,500.4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims wouldamount to 5 percent of sales.5. Paid the sales tax to the state agency on $140,500 of the sales.6. On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 5 percent interest rate and matured onMarch 1, Year 2.7. Paid $5,500 for warranty repairs during the year.8. Paid operating expenses of $53,000 for the year.9. Paid $126,000 of accounts payable.10. Recorded accrued interest on the note issued in transaction number 6.Exercise 9-8A (Algo) Part cc-1. Prepare the income statement for Year 1.c-2. Prepare the balance sheet for Year 1.c-3. Prepare the statement of cash flows for Year 1.Complete this question by entering your answers in the tabs below.Req C1Req C2Req C3Prepare the income statement for Year 1. (Round your answers to the nearest dollar.)Sales revenueOZARK SALESIncome StatementFor the Year Ended December 31, Year 1ExpensesTotal operating expenses

To prepare the income statement for Year 1 for Ozark Sales, we need to calculate the sales revenue…

Required Information Exercise 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 $48,000 from the issue of common stock. 2. Purchased merchandise inventory of $174,500 on account. 3. Sold merchandise for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $115,500. 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales

Required Information Exercise 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 $48,000 from the issue of common stock. 2. Purchased merchandise inventory of $174,500 on account. 3. Sold merchandise for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $115,500. 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales

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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