Required information [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 $50,000 from the issue of common stock. 2. Purchased equipment inventory of $174,500 on account. 3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000. 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 $153,000 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rate and-matured on March 1, Year 2. 7. Paid $5,600 for warranty repairs during the year. 8. Paid operating expenses of $55,000 for the year. 9. Paid $124,200 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6.
Required information [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 $50,000 from the issue of common stock. 2. Purchased equipment inventory of $174,500 on account. 3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000. 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 $153,000 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rate and-matured on March 1, Year 2. 7. Paid $5,600 for warranty repairs during the year. 8. Paid operating expenses of $55,000 for the year. 9. Paid $124,200 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Answer full question please.
Transcribed Image Text:**Prepare the Income Statement for Year 1 (Round your answers to the nearest dollar amount.)**
### OZARK SALES
**Income Statement**
_For the Year Ended December 31, Year 1_
---
| Description | Amount ($) |
|-------------------------------|------------|
| \\( \_\_\_\_\_\_\_\_\_\_ \\) | \\( \_\_\_\_\_\_\_\_\_\_ \\) |
| --- | --- |
| \\( \_\_\_\_\_\_\_\_\_\_ \\) | \\( \_\_\_\_\_\_\_\_\_\_ \\) |
**Expenses**
| \\( \_\_\_\_\_\_\_\_\_\_ \\) | \\( \_\_\_\_\_\_\_\_\_\_ \\) |
| \\( \_\_\_\_\_\_\_\_\_\_ \\) | \\( \_\_\_\_\_\_\_\_\_\_ \\) |
**Total operating expenses**
| \\( \_\_\_\_\_\_\_\_\_\_ \\) | \\( \_\_\_\_\_\_\_\_\_\_ \\) |
---
This template is organized to report the revenues and expenses for Ozark Sales during Year 1. The amounts should be rounded to the nearest dollar. The sections are structured to allow users to fill in figures for total income, itemized expenses, and the resulting net income or loss.
Transcribed Image Text:### Required Information
#### The following transactions apply to Ozark Sales for Year 1:
1. The business was started when the company received $50,000 from the issue of common stock.
2. Purchased equipment inventory of $174,500 on account.
3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000.
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 $153,000 of the sales.
6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2.
7. Paid $5,600 for warranty repairs during the year.
8. Paid operating expenses of $55,000 for the year.
9. Paid $124,200 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
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