u the expense before the repairs are ise 9-8A Current liabilities folloving tran
ID: 2558298 • Letter: U
Question
u the expense before the repairs are ise 9-8A Current liabilities folloving transactions aply to Ozark Sales for 2016: The 1. The stock business was started when the com LO 9-1,9-2,9-4 pany received $$0,000 from the issue of common chased equipment inventory of $380,000 on account. for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected the merchandise is sold. The merchandise had a cost of $330,000 when ud warranty claims would amount to 2 percent of sales a six-month warranty on the equipment sold. Based on industry estimates, the d the sales tax to the state agency on $400,000 of the sales 1, 2016, borrowed S50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, 2017 Paid S6,200 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. Show the effect of these transactions on the financial statements using a horizontal statements model like the one shown here. Use + for increase,-for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction is recorded as an example Liabilities Equity Rev.Exp. Net Inc. Cash Flow FA Assets NA NA NA NA Prepare the journal entries for the above transactions and post them to the appropriate T-accounts Prepare the income statement, balance sheet, and statement of cash flows for 2016. LO 9-5 d. What is th e total amount of current liabilities at December 31,2016?Explanation / Answer
JOurnal: (Date you can ignore)
Ledger: (Can be posted in T account as well)
Balance Sheet:
Cash Flow:
Total Amount of Current LIabilities:
Total: 193467
Asset = Liability+ Equity Revenue- Exp= Net Income Cash Flow Event Cash+ Inventory = Account Payable Sales tax Payable Warranty Int Payable Note Payable Common Stock Retained Earning 0 1 50000 50000 0 50000 Financing 2 380000 380000 0 3a 550800 40800 510000 510000 510000 550800 Operating 3b -330000 -330000 330000 -330000 4 10200 -10200 10200 -10200 5 -32000 -32000 0 -32000 Operating 6 50000 50000 0 50000 Financing 7 -6200 -6200 0 -6200 Operating 8 -78000 -78000 78000 -78000 -78000 Operating 9 -250000 -250000 0 -250000 Operating 10 667 -667 667 -667 0 Total 284600 50000 130000 8800 4000 667 50000 50000 91133 510000 418867 91133 284600Related Questions
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