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 $49.500 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 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 $149.500 of the sales. 6. On September 1, 2018, borrowed $21,000 from the local bank. The note had a 6 percent Interest rate and matured on March 1, 2019. 7. Paid $5.800 for warranty repairs during the year. 8. Pald operating expenses $54,000 for the year. 9. Paid $125.500 of accounts payable. 10. Recorded accrued Interest on the note Issued in transaction no. 6. c. What is the total amount of current liabilities at December 31, 2018? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount.) Total current liabilities

Answer 1

Calculate total current liabilities

Purchase inventory	174500
Sales tax payable (199500*7%)	13965
Warranty payable (199500*4%)	7980
Notes payable (21000+21000*6%*4/12)	21420
Warranty paid	-5800
Paid account payable	-125500
Total Current liabilities	86565