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 $49,500 from the issue of common stock. 2. Purchased merchandise inventory of $177,000 on account. 3. Sold merchandise for $198.500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $123,500. 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. 5. Paid the sales tax to the state agency on $148,500 of the sales, 6. On September 1, Year 1, borrowed $21,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2 7. Paid $5.600 for warranty repairs during the year. 8. Paid operating expenses of $55,000 for the year. 9. Paid $125,700 of accounts payable 10. Recorded accrued interest on the note issued in transaction number 6. Exercise 9-8A (Algo) Part b b1. Prepare the journal entries for the preceding transactions. b2. Post the transaction to the appropriate T-accounts.
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 $49,500 from the issue of common stock. 2. Purchased merchandise inventory of $177,000 on account. 3. Sold merchandise for $198.500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $123,500. 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. 5. Paid the sales tax to the state agency on $148,500 of the sales, 6. On September 1, Year 1, borrowed $21,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2 7. Paid $5.600 for warranty repairs during the year. 8. Paid operating expenses of $55,000 for the year. 9. Paid $125,700 of accounts payable 10. Recorded accrued interest on the note issued in transaction number 6. Exercise 9-8A (Algo) Part b b1. Prepare the journal entries for the preceding transactions. b2. Post the transaction to the appropriate T-accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
N1.
Transcribed Image Text:Required information
C
D
E
F
G
H
1
J
02
K
3a
3b
04
05
06
07
08
09
10
Cash
Sales revenue
Sales tax payable
Cost of goods sold
Merchandise inventory
Warranty expense
Warranties payable
Sales tax payable
Cash
Cash
Notes payable
Warranties payable
Cash
Operating expense
Cash
Accounts payable
Cash
Interest expense
Interest payable
Raq 81
Req B2 >
3
000
33
33
››
33
03
00
33
●●
477.000
212,395
123,500
9,925
10,395
21,000
5,600
55,000
125,700
175
>
3
3
198,500
13,895
123,500
9.925
10,395
21,000
5,600
55,000
125.700
175
![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 $49,500 from the issue of common stock
2. Purchased merchandise inventory of $177,000 on account.
3. Sold merchandise for $198,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise
is sold. The merchandise had a cost of $123,500.
4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would
amount to 5 percent of sales.
5. Paid the sales tax to the state agency on $148,500 of the sales.
6. On September 1. Year 1, borrowed $21,000 from the local bank. The note had a 5 percent interest rate and matured on
March 1, Year 2
7. Paid $5.600 for warranty repairs during the year.
8. Paid operating expenses of $55,000 for the year.
9. Paid $125,700 of accounts payable
10. Recorded accrued interest on the note issued in transaction number 6.
Exercise 9-8A (Algo) Part b
b1. Prepare the journal entries for the preceding transactions..
b2. Post the transaction to the appropriate T-accounts.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32c0cfc8-ebc2-43a6-9c48-ae841504d819%2F7dc27e7e-50bd-43c4-862a-a1d69b89bf6b%2Fvpt7cg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $49,500 from the issue of common stock
2. Purchased merchandise inventory of $177,000 on account.
3. Sold merchandise for $198,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise
is sold. The merchandise had a cost of $123,500.
4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would
amount to 5 percent of sales.
5. Paid the sales tax to the state agency on $148,500 of the sales.
6. On September 1. Year 1, borrowed $21,000 from the local bank. The note had a 5 percent interest rate and matured on
March 1, Year 2
7. Paid $5.600 for warranty repairs during the year.
8. Paid operating expenses of $55,000 for the year.
9. Paid $125,700 of accounts payable
10. Recorded accrued interest on the note issued in transaction number 6.
Exercise 9-8A (Algo) Part b
b1. Prepare the journal entries for the preceding transactions..
b2. Post the transaction to the appropriate T-accounts.
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