ll.Subject :- Accounting 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 $176,000 on account.3. Sold equipment for $201,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise issold. The merchandise had a cost of $126,000.4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amountto 3 percent of sales.5. Paid the sales tax to the state agency on $151,000 of the sales.6. On September 1, Year 1, borrowed $19,000 from the local bank. The note had a 7 percent interest rate and matured onMarch 1, Year 2.7. Paid $5,400 for warranty repairs during the year.8. Paid operating expenses of $55,500 for the year.9. Paid $124,100 of accounts payable.10. Recorded accrued interest on the note issued in transaction no. 6.c. What is the total amount of current liabilities at December 31, Year 1?Note: Round your answer to the nearest dollar amount.Answer is complete but not entirely correct.S75,975Total current liabilities

Current liabilities refers to the term of accounting which states the dues that become due and to be…

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 come 2. Purchased equipment inventory of $176,000 on account. 3. Sold equipment for $201.000 cash (not including sales tax). Sales tax of 8 percent is co sold. The merchandise had a cost of $126,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, th to 3 percent of sales. 5 Paid the sales tax to the state $161000 of the

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 come 2. Purchased equipment inventory of $176,000 on account. 3. Sold equipment for $201.000 cash (not including sales tax). Sales tax of 8 percent is co sold. The merchandise had a cost of $126,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, th to 3 percent of sales. 5 Paid the sales tax to the state $161000 of the

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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