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 equipment inventory of $175,500 on account. 3. Sold equipment for $192,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $117,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $142,000 of the sales. 6. On September 1, Year 1, borrowed $20,500 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 $53,500 for the year. 9. Paid $124,300 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Exercise 9-8A (Algo) Part c c. What is the total amount of current liabilities at December 31, Year 1? Note: Round your answer to the nearest dollar amount. Total current liabilities
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 equipment inventory of $175,500 on account. 3. Sold equipment for $192,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $117,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $142,000 of the sales. 6. On September 1, Year 1, borrowed $20,500 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 $53,500 for the year. 9. Paid $124,300 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Exercise 9-8A (Algo) Part c c. What is the total amount of current liabilities at December 31, Year 1? Note: Round your answer to the nearest dollar amount. Total current liabilities
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 63E: Reporting Liabilities Morton Electronics had the following obligations: a. A legally enforceable...
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![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 equipment inventory of $175,500 on account.
3. Sold equipment for $192,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is
sold. The merchandise had a cost of $117,000.
4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount
to 4 percent of sales.
5. Paid the sales tax to the state agency on $142,000 of the sales.
6. On September 1, Year 1, borrowed $20,500 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 $53,500 for the year.
9. Paid $124,300 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
Exercise 9-8A (Algo) Part c
c. What is the total amount of current liabilities at December 31, Year 1?
Note: Round your answer to the nearest dollar amount.
Total current liabilities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7da53e7c-0f2c-4a91-b9de-2c66171dec7e%2F5af4c6f0-4387-4c89-b86d-bb6ddd13984c%2F5zzw83o_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 equipment inventory of $175,500 on account.
3. Sold equipment for $192,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is
sold. The merchandise had a cost of $117,000.
4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount
to 4 percent of sales.
5. Paid the sales tax to the state agency on $142,000 of the sales.
6. On September 1, Year 1, borrowed $20,500 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 $53,500 for the year.
9. Paid $124,300 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
Exercise 9-8A (Algo) Part c
c. What is the total amount of current liabilities at December 31, Year 1?
Note: Round your answer to the nearest dollar amount.
Total current liabilities
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