Complete this question by entering your answers in the tabs below.Reg B BalSheetReg B IncReg B StmtReg AReq AReg CStmtCash FlowsRecord the given transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column,a financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amountsOZARK SALESHorizontal Statements ModelBalance SheetIncome StatementAssetsLiabilitiesStockholders' Equity+EventStatemenNo.NetFloRetained RevenueEarningsNotesExpenseMerchandise+InventoryCommonStockAccountsSales TaxWarranty+Interest+PayableCashIncomePayablePayablePayablePayable1.+++2.+++++За.++++++3b.+++++=4.++++5.++++6.++++%3D7.+++++++=%3D8.++++%3D9.+++++10.+++++Bal.0 +0 +0 +0 +0 +0 +0 -0 = The following transactions apply to Ozark Sales for Year 1:1. The business was started when the company received $49,000 from the issue of common stock.2. Purchased equipment inventory of $177,000 on account.3. Sold equipment for $194,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. Themerchandise had a cost of $119,500.4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percentof sales.5. Paid the sales tax to the state agency on $144,500 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 on March 1, Year2.7. Paid $5,500 for warranty repairs during the year.8. Paid operating expenses of $54,000 for the year.9. Paid $125,100 of accounts payable.O. Recorded accrued interest on the note issued in transaction no. 6.Requireda. Record the given transactions in a horizontal statements model.b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1.c. What is the total amount of current liabilities at December 31, Year 1?

The following transactions apply to Ozark Sales for Year 1: . The business was started when the company received $49,000 from the issue of common stock. . Purchased equipment inventory of $177,000 on account. . Sold equipment for $194,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $119,500. . Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. Paid the sales tax to the state agency on $144,500 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 $5,500 for warranty repairs during the year. . Paid operating expenses of $54,000 for the year. . Paid $125,100 of accounts payable. . Recorded accrued interest on the note issued in transaction no. 6. Required . Record the given transactions in a horizontal statements model. . Prepare the income statement, balance sheet, and statement of cash flows for Year 1. . What is the total amount of current liabilities at December 31, Year 1?

The following transactions apply to Ozark Sales for Year 1: . The business was started when the company received $49,000 from the issue of common stock. . Purchased equipment inventory of $177,000 on account. . Sold equipment for $194,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $119,500. . Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. Paid the sales tax to the state agency on $144,500 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 $5,500 for warranty repairs during the year. . Paid operating expenses of $54,000 for the year. . Paid $125,100 of accounts payable. . Recorded accrued interest on the note issued in transaction no. 6. Required . Record the given transactions in a horizontal statements model. . Prepare the income statement, balance sheet, and statement of cash flows for Year 1. . What is the total amount of current liabilities at December 31, Year 1?

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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Question: 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 $204,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $129,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $154,500 of the sales. 6. On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,700 for warranty repairs during the year. 8. Paid operating expenses of $56,000 for the year. 9. Paid $124,100 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. 1. Prepare the income statement for Year 1. 2.…
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How do I answer #5?
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Record the Year 1 transactions in general journal form.
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