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Required Information [The following information applles to the questions displayed below.] The...

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Accounting

Required Information
[The following information applles to the questions displayed below.]
The following transactions apply to Ozark Sales for Year 1:
The business was started when the company recelved $49,500 from the Issue of common stock.
Purchased equipment Inventory of $177,000 on account.
Sold equipment for $210,000 cash (not Including sales tax). Sales tax of 8 percent is collected when the merchandise is
sold. The merchandise had a cost of $135,000.
Provided a six-month warranty on the equipment sold. Based on Industry estimates, the warranty clalms would amount
to 4 percent of sales.
Pald the sales tax to the state agency on $160,000 of the sales.
On September 1, Year 1, borrowed $21,000 from the local bank. The note had a 6 percent interest rate and matured on
March 1, Year 2.
Pald $5,400 for warranty repalrs during the year.
Pald operating expenses of $55,000 for the year.
Pald $124,800 of accounts payable.
Recorded accrued Interest on the note issued in transaction no.6.
b-1. Prepare the income statement for Year 1.
Note: Round your answers to the nearest dollar amount.
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