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Required information [The following information applies to the questions displayed below] The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $42,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Paid $70,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1.

Required information [The following information applies to the questions displayed below] The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $42,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Paid $70,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(For all requirements, round your intermediate and final answers to the nearest whole dollar amount.) e. Prepare a post-closing trial balance. WALNUT ENTERPRISES Post Closing Trial Balance As of December 31, Year 1 Debit Account Titles Totals $ 0 $ Credit < Prev 0 CO 5 6 of 15 Next >
Transcribed Image Text:(For all requirements, round your intermediate and final answers to the nearest whole dollar amount.) e. Prepare a post-closing trial balance. WALNUT ENTERPRISES Post Closing Trial Balance As of December 31, Year 1 Debit Account Titles Totals $ 0 $ Credit < Prev 0 CO 5 6 of 15 Next >
ces Required information [The following information applies to the questions displayed below.] The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Check my work 1. Received $42,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Paid $70,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: 1. Paid the balance of the sales tax due for Year 1. 2. Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $83,000 of other operating expenses during the year. 5. Paid the sales tax due on $117,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. (For all requirements, round your intermediate and final answers to the nearest whole dollar amount.)
Transcribed Image Text:ces Required information [The following information applies to the questions displayed below.] The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Check my work 1. Received $42,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Paid $70,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: 1. Paid the balance of the sales tax due for Year 1. 2. Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $83,000 of other operating expenses during the year. 5. Paid the sales tax due on $117,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. (For all requirements, round your intermediate and final answers to the nearest whole dollar amount.)
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