Required information[The following information applies to the questions displayed below)The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:1. Received $41,000 cash from the issue of a short-term note with a 4 percent interest rate and a one-year maturity. Thenote was made on April 1, Year 1.2. Received $121,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rateof 5 percent3. Paid $72.500 cash for other operating expenses during the year.4. Paid the sales tax due on $101,000 of the service revenue for the year. Sales tax on the balance of the revenue is notdue until Year 2.5. Recognized the accrued interest at December 31, Year 1The following transactions apply to Walnut Enterprises for Year 2:1. Paid the balance of the sales tax due for Year 1.2. Received $146,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rateof 5 percent.3. Repaid the principal of the note and applicable interest on April 1, Year 2.4. Paid $85,500 of other operating expenses during the year.5. Paid the sales tax due on $121,000 of the service revenue. The sales tax on the balance of the revenue is not due untilYear 3.(For all requirements, round your intermediate and final answers to the nearest whole dollar amount.)e. Prepare a post-closing trial balance.

Post Closing Trial Balance -Post Closing Trial balance is prepared after posting closing entries to…

Answered: e. Prepare a post-closing trial…

Business

Accounting

e. Prepare a post-closing trial balance.

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 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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