Question

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 the caler tax to the state anency on $160.000 of the salos On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 5 percent Interest rate and matured on 7. Pald $5,500 for warranty repairs during the year. for the year 9 Pad S125 600 of accounts pavable 10 Recorded accrued Interest on the note Issued in transaction no, 6. Required Show the effects of these transactions on the financlal statements using a horzontal statements model (Use a- to indicate increase or fnaning actuity FAL Columnr for cuonts that bave no offoct ofho elemente ehould he loh hiank 1(None Ne all cell will require an Input.) Statement of Cash Flows FA Net Liabilitios + Event Assats Equity Revenue Expenses Income 3a. 3b 7 10.

Answer 1

Events	Assets	=	Liabilities	+	Equity	Revenue	-	Expenses	=	Net income	Statement of cash flow
1	+				+						+	FA
2	+		+									NA
3a.	+		+		+	+				+	+	OA
3b.	-				-			-		-		NA
4			+		-			-		-		NA
5	-		-								-	OA
6	+		+								+	FA
7	-		-								-	OA
8	-				-			-		-	-	OA
9	-		-								-	OA
10			+		-			-				OA