ll.Subject :- Accounting The following transactions apply to Ozark Sales for Year 1:1. The business was started when the company received $48,500 from the issue of common stock.2. Purchased equipment inventory of $176,000 on account.3. Sold equipment for $201,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise issold. The merchandise had a cost of $126,000.4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amountto 3 percent of sales.5. Paid the sales tax to the state agency on $151,000 of the sales.6. On September 1, Year 1, borrowed $19,000 from the local bank. The note had a 7 percent interest rate and matured onMarch 1, Year 2.7. Paid $5,400 for warranty repairs during the year.8. Paid operating expenses of $55,500 for the year.9. Paid $124,100 of accounts payable.10. Recorded accrued interest on the note issued in transaction no. 6.c. What is the total amount of current liabilities at December 31, Year 1?Note: Round your answer to the nearest dollar amount.Answer is complete but not entirely correct.S75,975Total current liabilities

Current liabilities refers to the term of accounting which states the dues that become due and to be…

The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $48,500 from the issue of come 2. Purchased equipment inventory of $176,000 on account. 3. Sold equipment for $201.000 cash (not including sales tax). Sales tax of 8 percent is co sold. The merchandise had a cost of $126,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, th to 3 percent of sales. 5 Paid the sales tax to the state $161000 of the

The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $48,500 from the issue of come 2. Purchased equipment inventory of $176,000 on account. 3. Sold equipment for $201.000 cash (not including sales tax). Sales tax of 8 percent is co sold. The merchandise had a cost of $126,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, th to 3 percent of sales. 5 Paid the sales tax to the state $161000 of the

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...

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