chapter 9 question 3

Required information [The following information applies to the questions displayed below.] 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 merchandise inventory of $177,500 on account. 3. Sold merchandise for $196,500 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $121,500. 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $146,500 of the sales. 6. On September 1, Year 1, borrowed $22,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2 7. Paid $5.500 for warranty repairs during the year 8. Paid operating expenses of $54,500 for the year. 9. Paid $125,500 of accounts payable. 10. Recorded accrued interest on the note issued in transaction number 6 . A The business was started when the company received $48,500 from the issue of common stock. Record the transaction. B Purchased merchandise inventory of $177,500 on account. Record the transaction. Sold merchandise for $196,500 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. Record the transaction. D The merchandise sold had a cost of $121,500. Record the transaction. E Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. Record the transaction. F Paid the sales tax to the state agency on $146,500 of the sales. Record the transaction. G On September 1 , Year 1 , borrowed $22,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2. Record the transaction. H Paid $5,500 for warranty repairs during the year. Record the transaction. I Paid operating expenses of $54,500 for the year. Record the transaction. Paid $125,500 of accounts payable. Record the transaction. Recorded accrued interest on the note issued in transaction number 6 . Record the transaction. Post the transactions to the appropriate T-accounts. (Round your answers to the nearest dollar amount.) Required information b1. Prepare the journal entries for the preceding transactions. b2. Post the transaction to the appropriate T-accounts