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Exercise 7-21 Current liabilities LO 7-2,7-4,7-9 The following information applies to the questions displayed below]...

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Exercise 7-21 Current liabilities LO 7-2,7-4,7-9 The following information applies to the questions displayed below] The following transactions apply to Midsouth Equipment Sales Corp. for 2014: 1. The business was started when Midsouth recelved $49,000 from the issue of common stock 2. Purchased $176,500 of merchandise on account 3. Sold merchandise for $196,000 cash (not including sales tax) Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $121,000 a slx-month warranty on the merchandise sold. Based on industry estimates, the warranty clalms would amount to 4 percent of merchandise sales. 5 Pald the sales tax to the state agency on $146.000 of the sales 6. On Septeber 1,2014, borrowed S19.500 from the local bank. The note had a 7 percent interest rate and matures on March 1, 2015 7. Paid $5,500 for warranty repairs during the year 8 Pald 9. Pald $124,300 of accounts payable. 10. Recorded accrued interest at the end of the year operating expenses of $52,000 for the year Exercise 7-21 Current lablities to 32.74 7-9 Section Break Type here to search

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