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  3. the following transactions apply to ozark sales fo

The following transactions apply to Ozark Sales for Year 1: The business was...

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Accounting

The following transactions apply to Ozark Sales for Year 1:

  1. The business was started when the company received $49,500 from the issue of common stock.
  2. Purchased merchandise inventory of $177,500 on account.
  3. Sold merchandise for $191,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $116,000.
  4. Provided a six-month warranty on the merchandise 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 $141,000 of the sales.
  6. On September 1, Year 1, borrowed $19,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2.
  7. Paid $5,800 for warranty repairs during the year.
  8. Paid operating expenses of $53,500 for the year.
  9. Paid $125,800 of accounts payable.
  10. Recorded accrued interest on the note issued in transaction number 6.

find the horizontal statements model, journal entry, income statement, and the total current liabilities.

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