[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 $175,000 on account. 3. Sold merchandise for $199,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $124,500. 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 $149,500 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 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 $54,000 for the year. 9. Paid $125,600 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.
[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 $175,000 on account. 3. Sold merchandise for $199,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $124,500. 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 $149,500 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 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 $54,000 for the year. 9. Paid $125,600 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
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Do not give image format
![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 $175,000 on account.
3. Sold merchandise for $199,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise
is sold. The merchandise had a cost of $124,500.
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 $149,500 of the sales.
6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 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 $54,000 for the year.
9. Paid $125,600 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%2F6e0fefd6-f6db-496c-9a39-e894d1c47056%2Ffc48d03e-6c60-459b-b4ba-96a1396da308%2F7p0f6jh_processed.png&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 $175,000 on account.
3. Sold merchandise for $199,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise
is sold. The merchandise had a cost of $124,500.
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 $149,500 of the sales.
6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 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 $54,000 for the year.
9. Paid $125,600 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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