Question

[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 $48,500 from the issue of common stock.

2. Purchased equipment inventory of $175,500 on account.

3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise 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 claims would amount to 5 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 $19,000 from the local bank. The note had a 5 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 $55,500 for the year.

9. Paid $125,400 of accounts payable.

10. Recorded accrued interest on the note issued in transaction no. 6.

c-1. Prepare the income statement for Year 1. (Round your answers to the nearest dollar amount.)

c-2. Prepare the balance sheet for Year 1. (Round your answers to the nearest dollar amount.)

c-3. Prepare the statement of cash flows for Year 1. (Amounts to be deducted and losses should be indicated with minus sign. Round your answers to the nearest dollar amount.)

d. What is the total amount of current liabilities at December 31, Year 1? (Round your answer to the nearest dollar amount.) Total current liabilities

Please make sure answers are legible if writing by hand. I would prefer if an EXCEL spreadsheet was used for this for each requirement.

Answer 1