Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

The following transactions apply to Ozark Sales for Year 1:
1. The business was started when the company received $50,000 from the issue of common stock. 2, Purchased inventory of $380,000 on account.
3. Sold 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.
4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales.
5. Paid the sales tax to the state agency on $400,000 of the sales.
6. 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.
7. Paid $6,200 for warranty repairs during the year.
8. Paid operating expenses of $78,000 for the year.
9. Paid $250,000 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.
Prepare the journal entries for the preceding transactions and post them to the appropriate T-accounts.

Sagot :

wdr85961p7ip6d

Answer:

Current liabilities: Accounts payable$130,000

Sales tax payable 8,800

Warranty Payable 4,000

Interest payable 667

Notes payable 50,000

Total current liabilities$193,467

Explanation:

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.