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Required information [The following information applies to the questionts displayed below.] The foliowing transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $41,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $119,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Paid $71,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $99,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1 , The following transactions apply to Walnut Enterprises for Year 2: 1. Paid the balance of the sales tax due for Year 1. 2. Received $144,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $84,000 of other operating expenses during the year. 5. Paid the sales tax due on $119,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. (For all requirements, round your intermediate and final answers to the nearest whole dollar amount.) Journal entry worksheet BCDCF Paid the balance of the sales tax due for Year 1. Record the transaction. Note: Enter debits before credits. Required information Prepare an income statement for Year 2. WALNUT ENTERPRISES Statement of Changes of Stockholders' Equity For the Year Ended December 31, Year 2 \begin{tabular}{|l|l|l|} \hline Common stock & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total stockholders' equity & & 0 \\ \hline \end{tabular} Prenare a balance sheet for Year 2. WALNUT ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 2 Journal entry worksheet Record the closing entry for service revenue. Note: Enter debits before credits. Prepare a post-closing trial balance for Year 2

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