Question

Required information The following information applies to the questions displayed below. The following transactions apply to Ozark Sales for 2018 1. The business was started when the company received $49,000 from the issue of common stock. 2. Purchased equipment inventory of $175,500 on account. 3. Sold equipment for $192,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $117,500 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 $142,500 of the sales. 6. On September 1, 2018, borrowed $21,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, 2019. 7. Paid $5,800 for warranty repairs during the year. 8. Paid operating expenses of $55,500 for the year 9. Paid $124,900 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6.

a. Record the given transactions in a horizontal statements model like the following one. (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 NA for not affected. Do not round intermediate calculations and round your answers to the nearest whole dollar amount.)OZARK Horizontal Statements Model Balance Sheet Liabilities Sales Tax Warranty Event Assets + Stockholders Equity O. Cash+Merchandise Accounts Inventory Interest + Common+ Retained Earnings Payable Payable Payable Payable Notes Payable 2. 3b 4 6 10 BalIncome Statement Statement of Cash Flows Net RevenueExpense -

0 0
Add a comment Improve this question Transcribed image text
Answer #1
Assets                 = Liabilities                                                                       + Stockholers Equity
Event cash Merchandise Accounts Sales tax Warranty interest notes Common Retaine
no inventory payable payable payable payable payable Stock earnings
1 49,000 0 0 0 0 0 0 49,000 0
2 0 175,500 175,500 0 0 0 0 0 0
3a. 207,900 0 0 15400 0 0 0 0 192,500
3b. 0 -117500 0 0 0 0 0 0 -117,500
4 0 0 0 0 9,625 0 0 0 -9,625
5 -11400 0 0 -11400 0 0 0 0 0
6 21,000 0 0 0 0 0 21,000 0 0
7 -5,800 0 0 0 -5,800 0 0 0 0
8 -55,500 0 0 0 0 0 0 0 -55,500
9 -124,900 0 -124900 0 0 0 0 0
10 0 0 0 0 0 350 0 0 -350
Bal 80,300 58000 50600 4000 3825 350 21000 49,000 9525
Revenues expenses net Statement of cash flow
income
0 0 0 49,000 FA
0 0 0 0 NA
192,500 0 192500 207,900 OA
0 117,500 -117500 0 NA
0 9,625 -9625 0 NA
0 0 0 -11,400 OA
0 0 0 21,000 FA
0 0 0 -5,800 OA
0 55,500 -55,500 -55,500 OA
0 0 0 -124,900 OA
0 0 350 0 OA
192500 182625 10225 80,300
Add a comment
Know the answer?
Add Answer to:
Required information The following information applies to the questions displayed below. The following transactions apply to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Required information [The following information applies to the questions displayed below.] The following transactions apply to...

    Required information [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased equipment inventory of $380,000 on account 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000. 4. Provided a six- month warranty on...

  • Required information [The following information applies to the questions displayed below.] The following transactions apply to...

    Required information [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company recelved $49,500 from the issue of common stock. 2 Purchased equipment Inventory of $174.500 on account. 3. Sold equipment for $199,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $124.500. 4. Provided a six-month warranty on the...

  • [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales...

    [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 $48,500 from the issue of common stock. 2. Purchased equipment inventory of $175,500 on account. 3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 6 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...

  • the reason bonds are sometimes Required information [The following information applies to the questions displayed below....

    the reason bonds are sometimes Required information [The following information applies to the questions displayed below. The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $49,000 from the issue of common stock 2. Purchased equipment inventory of $178,000 on account. 3. Sold equipment for $193,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $118,500. 4. Provided...

  • The following transactions apply to ozark sales for Year 1 [The following information applies to the...

    The following transactions apply to ozark sales for Year 1 [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 $48,500 from the issue of common stock 2. Purchased equipment inventory of $178,000 on account 3. Sold equipment for $201,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost...

  • Required information [The following information applies to the questions displayed below.] The following transactions apply to...

    Required information [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $49.500 from the issue of common stock. 2 Purchased equipment Inventory of $174.500 on account. 3. Sold equipment for $199,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $124.500. 4. Provided a six-month warranty on the...

  • please do not input values Required information [The following information applies to the questions displayed below.)...

    please do not input values 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 $49,500 from the issue of common stock. 2. Purchased equipment inventory of $177,500 on account 3. Sold equipment for $196,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $121,500. 4....

  • 2 Required information The following information applies to the questions displayed below The following transactions apply...

    2 Required information The following information applies to the questions displayed below The following transactions apply to Ozark Sales for Year 1 Part 1 of 3 e ntory of $:76 000 on a 000 from the issue of common stock 3. Sold equipment for $210,000 cash (not Including sales tax). Sales tax of 7 percent is collected when merchandtse is 4. Provided a sx-month warranty on the equipment sold. Based on Industry estimates, the warranty claims would amount Sask ERd...

  • Return to que ! Required information [The following information applies to the questions displayed below.] The...

    Return to que ! Required information [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased equipment inventory of $380,000 on account 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000. 4. Provided a...

  • Required information [The following information applies to the questions displayed below.] The following transactions apply to...

    Required information [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $49,500 from the issue of common stock. 2 Purchased equipment Inventory of $174.500 on account. 3. Sold equipment for $199,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $124.500. 4. Provided a six-month warranty on the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT