Balance Sheet As of December 31, Year 1 \table [[Assets,,], [Cash,, $420,280 The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $48,000 from the issue of common stock.Purchased equipment inventory of $176,000 on account. Sold equipment for $204,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $129,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. Paid the sales tax to the state agency on $154,000 of the sales. On September 1, Year 1, borrowed $20,000 fromthe local bank. The note had a 7 percent interest rate and matured on March 1, Year 2. Paid $5,900 for warranty repairs during the year. Paid operating expenses of $53,500 for the year. Paid $125,400 of accounts payable. Recorded accruedinterest on the note issued in transaction no. 6. 1. Prepare the balance sheet for Year 12. Prepare the statement of cash flows for Year 1. AssetsCashMerchandise inventoryTotal assetsLiabilitiesAccounts payableSales tax payableWarranty payableInterest payableNotes payableBalance SheetAs of December 31, Year 1Total liabilitiesStockholders' equityCommon stockRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equity$420,280176,000$596,280000

Name: Balance Sheet As of December 31, Year 1 \table [[Assets,,], [Cash,, $
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Description: Balance Sheet As of December 31, Year 1 \table [[Assets,,], [Cash,, $420,280 The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $48,000 from the issue of common stock.Purchased equipment in

Profit and loss account, balance sheet and cash flow statement are the three main financial…

Answered: . 6. 1. Prepare the balance sheet for…

Business

Accounting

. 6. 1. Prepare the balance sheet for Year 1 2. Prepare the statement of cash flows for Year 1.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 18E

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