4 Part 2 of 5 10 points eBook Print O References Required information [The following information...

Transcribed Image Text:

4 Part 2 of 5 10 points eBook Print O References 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 $41,000 cash from the issue of a short-term note with a 4 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $121,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent. 3. Paid $72,500 cash for other-operating expenses during the year. 4. Paid the sales tax due on $101,000 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 $146,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent. 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $85,500 of other operating expenses during the year. 5. Paid the sales tax due on $121,000 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.) b. Post the transactions to T-accounts. 4 Part 2 of 5 b. Post the transactions to T-accounts. 10 points Beginning Balance Cash Sales Tax Payable Beginning Balance Balance Before Closing Balance Before Closing eBook Interest Payable Notes Payable Beginning Balance Beginning Balance Print Balance Before Closing Balance Before Closing References Service Revenue Operating Expenses Beginning Balance Beginning Balance Balance Before Closing Balance Before Closing Interest Expense Beginning Balance Balance Before Closing Check my work 4 Part 2 of 5 10 points eBook Print O References 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 $41,000 cash from the issue of a short-term note with a 4 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $121,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent. 3. Paid $72,500 cash for other-operating expenses during the year. 4. Paid the sales tax due on $101,000 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 $146,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent. 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $85,500 of other operating expenses during the year. 5. Paid the sales tax due on $121,000 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.) b. Post the transactions to T-accounts. 4 Part 2 of 5 b. Post the transactions to T-accounts. 10 points Beginning Balance Cash Sales Tax Payable Beginning Balance Balance Before Closing Balance Before Closing eBook Interest Payable Notes Payable Beginning Balance Beginning Balance Print Balance Before Closing Balance Before Closing References Service Revenue Operating Expenses Beginning Balance Beginning Balance Balance Before Closing Balance Before Closing Interest Expense Beginning Balance Balance Before Closing Check my work