Required Information Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4 [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 $48,000 from the issue of common stock. 2. Purchased merchandise inventory of $174,500 on account. 3. Sold merchandise for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $115,500. 4. Provided a six-month warranty on the merchandise 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 $140,500 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, Year 2 7. Paid $5,500 for warranty repairs during the year. 8. Paid operating expenses of $53,000 for the year. 9. Paid $126,000 of accounts payable. 10. Recorded accrued interest on the note issued in transaction number 6. Exercise 9-8A (Algo) Part b 1. Prepare the journal entries for the preceding transactions. 2. Post the transaction to the appropriate T-accounts. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Prepare the journal entries for the preceding transactions. (Round your answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B C D E F G H K The business was started when the company received $48,000 from the issue of common stock. Record the transaction. Note: Enter debits before credits.
Required Information Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4 [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 $48,000 from the issue of common stock. 2. Purchased merchandise inventory of $174,500 on account. 3. Sold merchandise for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $115,500. 4. Provided a six-month warranty on the merchandise 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 $140,500 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, Year 2 7. Paid $5,500 for warranty repairs during the year. 8. Paid operating expenses of $53,000 for the year. 9. Paid $126,000 of accounts payable. 10. Recorded accrued interest on the note issued in transaction number 6. Exercise 9-8A (Algo) Part b 1. Prepare the journal entries for the preceding transactions. 2. Post the transaction to the appropriate T-accounts. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Prepare the journal entries for the preceding transactions. (Round your answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B C D E F G H K The business was started when the company received $48,000 from the issue of common stock. Record the transaction. Note: Enter debits before credits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required Information
Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4
[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 $48,000 from the issue of common stock.
2. Purchased merchandise inventory of $174,500 on account.
3. Sold merchandise for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise
is sold. The merchandise had a cost of $115,500.
4. Provided a six-month warranty on the merchandise 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 $140,500 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, Year 2.
7. Paid $5,500 for warranty repairs during the year.
8. Paid operating expenses of $53,000 for the year.
9. Paid $126,000 of accounts payable.
10. Recorded accrued interest on the note issued in transaction number 6.
Exercise 9-8A (Algo) Part b
b1. Prepare the journal entries for the preceding transactions.
b2. Post the transaction to the appropriate T-accounts.
Complete this question by entering your answers in the tabs below.
Req B1
Req B2
Prepare the journal entries for the preceding transactions. (Round your answers to the nearest dollar amount. If no entry is required for
a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
>
A B C D E F G H
K
The business was started when the company received $48,000 from the issue
of common stock. Record the transaction.
Note: Enter debits before credits.
Drou](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f9ef503-1db3-4078-a074-bb372da43f90%2F9a75d026-5c38-45ba-a694-3be29b3d9a85%2Fempbfes_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4
[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 $48,000 from the issue of common stock.
2. Purchased merchandise inventory of $174,500 on account.
3. Sold merchandise for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise
is sold. The merchandise had a cost of $115,500.
4. Provided a six-month warranty on the merchandise 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 $140,500 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, Year 2.
7. Paid $5,500 for warranty repairs during the year.
8. Paid operating expenses of $53,000 for the year.
9. Paid $126,000 of accounts payable.
10. Recorded accrued interest on the note issued in transaction number 6.
Exercise 9-8A (Algo) Part b
b1. Prepare the journal entries for the preceding transactions.
b2. Post the transaction to the appropriate T-accounts.
Complete this question by entering your answers in the tabs below.
Req B1
Req B2
Prepare the journal entries for the preceding transactions. (Round your answers to the nearest dollar amount. If no entry is required for
a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
>
A B C D E F G H
K
The business was started when the company received $48,000 from the issue
of common stock. Record the transaction.
Note: Enter debits before credits.
Drou
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