1. The business was started when the company received $49,000 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold equipment for $207,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $132,000. 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 $157,000 of the sales. 6. On September 1, Year 1, borrowed $21,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,800 for warranty repairs during the year. 8. Paid operating expenses of $54,500 for the year. 9. Paid $125,500 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Required a. Record the given transactions in a horizontal statements model. b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1. c. What is the total amount of current liabilities at December 31, Year 1? Complete this question by entering your answers in the tabs below. Req B Inc Req B Bal Req A Req B Stmt Req C Stmt Sheet Cash Flows Record the given transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts. Not all cells will require entry.) OZARK SALES Horizontal Statements Model Balance Sheet Income Statement Event No. Assets Cash Merchandise Inventory Accounts Payable Sales Tax Payable Liabilities Warranty Payable Stockholders' Equity Statement of Cash Interest Notes Payable Payable Stock Common Retained Revenue Expense Earnings Net Income Flows 1. 49,000+ 49,000+ 49,000 FA 2. 177,000= 177,000+ + + 3a. 221,490+ 132,000- 14,490+ + + 132,000 3b. + . + 4. + . + 5. + . 6. 7. 8. . . . + . 9. 10. Bal. 270,490 309,000 177,000+ 14,490 + 0. 0. 49,000+ 132,000 = 0 49,000 Show less

1. The business was started when the company received $49,000 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold equipment for $207,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $132,000. 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 $157,000 of the sales. 6. On September 1, Year 1, borrowed $21,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,800 for warranty repairs during the year. 8. Paid operating expenses of $54,500 for the year. 9. Paid $125,500 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Required a. Record the given transactions in a horizontal statements model. b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1. c. What is the total amount of current liabilities at December 31, Year 1? Complete this question by entering your answers in the tabs below. Req B Inc Req B Bal Req A Req B Stmt Req C Stmt Sheet Cash Flows Record the given transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts. Not all cells will require entry.) OZARK SALES Horizontal Statements Model Balance Sheet Income Statement Event No. Assets Cash Merchandise Inventory Accounts Payable Sales Tax Payable Liabilities Warranty Payable Stockholders' Equity Statement of Cash Interest Notes Payable Payable Stock Common Retained Revenue Expense Earnings Net Income Flows 1. 49,000+ 49,000+ 49,000 FA 2. 177,000= 177,000+ + + 3a. 221,490+ 132,000- 14,490+ + + 132,000 3b. + . + 4. + . + 5. + . 6. 7. 8. . . . + . 9. 10. Bal. 270,490 309,000 177,000+ 14,490 + 0. 0. 49,000+ 132,000 = 0 49,000 Show less

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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