Answer full question please. 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 equipment inventory of $174,500 on account.3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 7 percent is collected when themerchandise is sold. The merchandise had a cost of $128,000.4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claimswould amount to 4 percent of sales.5. Paid the sales tax to the state agency on $153,000 of the sales.6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rateand -matured on March 1, Year 2.7. Paid $5,600 for warranty repairs during the year.8. Paid operating expenses of $55,000 for the year.9. Paid $124,200 of accounts payable.10. Recorded accrued interest on the note issued in transaction no. 6. (The following information applies to the questions displayed below.]The following transactions apply to Ozark Sales for Year 1:rt 3 of 31. The business was started when the company received $50,000 from the issue of common stock.2. Purchased equipment inventory of $174,500 on account.3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise issold. The merchandise had a cost of $128,000.4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amountto 4 percent of sales.5. Paid the sales tax to the state agency on $153,000 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 onMarch 1, Year 2.7. Paid $5,600 for warranty repairs durirg the year.8. Paid operating expenses of $55,000 for the year.9. Paid $124,200 of accounts payable.10. Recorded accrued interest on the note issued in transaction no 6.tseBookc. What is the total amount of current liabilities at December 31, Year 1? (Round your answer to the nearest dollar amount.)Total current liabilities

Solution c: Total amount of current liabilities = Accounts Payable + Sales tax payable + Warranty…

Answered: The following transactions apply to…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
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 $175,000 on account. 3. Sold merchandise for $206,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $131,500. 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $156,500 of the sales. 6. On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2. 7. Paid $6,000 for warranty repairs during the year. 8. Paid operating expenses of $55,000 for the year. 9. Paid $124,000 of accounts payable. 10. Recorded accrued interest on…
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On March 25, Osgood Company sold merchandise on account, $2,900, terms n/30. The applicable sales tax percentage is 5%. Required: Record the transaction. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Osgood Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customer Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 523 Depreciation Expense 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534…
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $21,200 was sold for $39,900 under terms 2/20, net/30. Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $1,520. The merchandise had cost Ozark $920. All customers paid their accounts within the discount period. Selling and administrative expenses amounted to $4,200. Interest expense paid amounted to $360. Land that had cost $8,000 was sold for $9,250 cash. Requireda. Determine the amount of net sales. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Prepare a multistep income statement. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.) c. Where would the interest expense be shown on the statement of cash flows? Operating activities…
Stefan Company provided the following data for the current year, the first year of operations. a. Purchase of merchandise at an invoice price of $4,750,000 excluding freight. Terms are 2 /10, n /30. b. Freight paid, $250,000. The freight is allocated to each purchase. c. Cash payment on purchases, $3,717,000, of which $1,617,000 was paid within the discount period. d. It is expected that all discounts on unpaid accounts payable will be lost. e. On December 31, one fifth of the merchandise remains on hand. Requirement: 1. Prepare journal entries to record the transactions using gross method and net method. 2. Compute the inventory and cost of sales under each method.
Swisher Company sold inventory with a selling price of $5,000 to customers for cash.It also collected sales taxes of $250. The journal entry to record this information includes aa. credit to Sales Tax Expense $250.b. credit to Sales Revenue $5,250.c. debit to Sales Tax Payable $250.d. debit to Cash of $5,250.
Journalize the entries to record the following selected transactions:a. Sold $62,800 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $37,500.b. Paid $39,650 to the state sales tax department for taxes collected.
Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. a. Sold $64,300 of merchandise on account, subject to a sales tax of 5%. The cost of the goods sold was $37,000. b. Paid $40,740 to the state sales tax department for taxes collected.
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The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300. 3. Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000. 4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200. 5. Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400. 12. Received check for amount due from Equinox Co. for sale on March 2. 14. Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350. 16. Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise…

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