The following transactions apply to Ozark Sales for Year 1 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased merchandise inventory of $380,000 on account. 3. Sold merchandise for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. 5. Paid the sales tax to the state agency on $400,000 of the sales. 6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2. 7. Paid $6,200 for warranty repairs during the year. 8. Paid operating expenses of $78,000 for the year. 9. Paid $250,000 of accounts payable 10. Recorded accrued interest on the note issued in transaction no. 6. d. What is the total amount of current liabilities at December 31, Year 17 (Round your intermediate calculation to the nearest dollar) Total current liabides
The following transactions apply to Ozark Sales for Year 1 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased merchandise inventory of $380,000 on account. 3. Sold merchandise for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. 5. Paid the sales tax to the state agency on $400,000 of the sales. 6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2. 7. Paid $6,200 for warranty repairs during the year. 8. Paid operating expenses of $78,000 for the year. 9. Paid $250,000 of accounts payable 10. Recorded accrued interest on the note issued in transaction no. 6. d. What is the total amount of current liabilities at December 31, Year 17 (Round your intermediate calculation to the nearest dollar) Total current liabides
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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 $50,000 from the issue of common stock.
2. Purchased merchandise inventory of $380,000 on account.
3. Sold merchandise for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when
the merchandise is sold. The merchandise had a cost of $330,000
4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty
claims would amount to 2 percent of sales.
5. Paid the sales tax to the state agency on $400,000 of the sales
6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate
and matured on March 1, Year 2.
7. Paid $6,200 for warranty repairs during the year.
8. Paid operating expenses of $78,000 for the year.
9. Paid $250,000 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
d. What is the total amount of current liabilities at December 31, Year 17 (Round your intermediate calculation to the nearest
dollar)
Total current liabilities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d96c433-4ae2-4ffe-8547-46920e3c1bcb%2F5b55da6a-e021-4a79-a16d-55927d95ec07%2Fnqtgah_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 Ozark Sales for Year 1
1. The business was started when the company received $50,000 from the issue of common stock.
2. Purchased merchandise inventory of $380,000 on account.
3. Sold merchandise for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when
the merchandise is sold. The merchandise had a cost of $330,000
4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty
claims would amount to 2 percent of sales.
5. Paid the sales tax to the state agency on $400,000 of the sales
6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate
and matured on March 1, Year 2.
7. Paid $6,200 for warranty repairs during the year.
8. Paid operating expenses of $78,000 for the year.
9. Paid $250,000 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
d. What is the total amount of current liabilities at December 31, Year 17 (Round your intermediate calculation to the nearest
dollar)
Total current liabilities
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