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Accounting

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Required information
[The following information applies to the questions displayed below.]
The following transactions apply to Ozark Sales for Year 1:
The business was started when the company received $50,000 from the issue of common stock.
Purchased equipment inventory of $380,000 on account.
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.
Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales.
Paid the sales tax to the state agency on $400,000 of the sales.
On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2.
Paid $6,200 for warranty repairs during the year.
Paid operating expenses of $78,000 for the year.
Paid $250,000 of accounts payable.
Recorded accrued interest on the note issued in transaction no.6.
Prepare an income statement
Prepare a balance sheet
Prepare a statement of cash flows
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