Required information [The following information applies to the questions displayed below.] The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $41,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent. 3. Paid $71,500 cash for other operating expenses during the year. 4. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1.
Required information [The following information applies to the questions displayed below.] The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $41,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent. 3. Paid $71,500 cash for other operating expenses during the year. 4. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare a balance sheet for Year 1.
![Required information
[The following information applies to the questions displayed below.]
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:
1. Received $41,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The
note was made on April 1, Year 1.
2. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate
of 5 percent.
3. Paid $71,500 cash for other operating expenses during the year.
4. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not
due until Year 2.
5. Recognized the accrued interest at December 31, Year 1.
The following transactions apply to Walnut Enterprises for Year 2:
1. Paid the balance of the sales tax due for Year 1.
2. Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate
of 5 percent.
3. Repaid the principal of the note and applicable interest on April 1, Year 2.
4. Paid $84,500 of other operating expenses during the year.
5. Paid the sales tax due on $117,000 of the service revenue. The sales tax on the balance of the revenue is not due until
Year 3.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04fed8df-2897-4d7c-8ebc-718f084eaa19%2F76c22edc-22b0-4971-a738-71ead2453e2d%2F3xztbws_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:
1. Received $41,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The
note was made on April 1, Year 1.
2. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate
of 5 percent.
3. Paid $71,500 cash for other operating expenses during the year.
4. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not
due until Year 2.
5. Recognized the accrued interest at December 31, Year 1.
The following transactions apply to Walnut Enterprises for Year 2:
1. Paid the balance of the sales tax due for Year 1.
2. Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate
of 5 percent.
3. Repaid the principal of the note and applicable interest on April 1, Year 2.
4. Paid $84,500 of other operating expenses during the year.
5. Paid the sales tax due on $117,000 of the service revenue. The sales tax on the balance of the revenue is not due until
Year 3.
Transcribed Image Text:Assets
Cash
Total assets
Liabilities
Notes payable
Interest expense
Sales tax payable
Total liabilities
Stockholders' equity
Common stock
Retained earnings
Balance Sheet
As of December 31, Year 1
Total stockholders equity
Total liabilities and stockholders' equity
$
$
LA
$
87,500
87,500
41,000
1,538
1,000
43,538
0
43,538
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