Exercise 9-8A (algo) Current liabilities LO 9-1, 9-2, 9-4

Required information Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4 [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 equipment inventory of $177.500 on account. 3. Sold equipment for $199,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $124,500 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. 5. Paid the sales tax to the state agency on $149,500 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 $54,000 for the year. 9. Paid $125,700 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no, 6 . Required information