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ission Fol ch7 HW The following transactions+ v Saved Help Save & Ex Chec The following transactions apply to Ozark Sales for 2018 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased equipment inventory of $380,000 on account. 3. 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. 4. Provided a six-month warranty on the equipment 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. 2018, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, 2019 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 Required a. Record the given transactions in a horizontal statements model like the following one. (Enter any decreases to account balances ows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), an and cash outfl investing activity (IA), or a financing activity (FA) and NA for not affected. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts.) 3co 4 of 4 Next Prev ace

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