Required information

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

Skip to question

$[$The following information applies to the questions displayed below.$]$

The following transactions apply to Ozark Sales for Year $1$:

The business was started when the company received $$49,000$ from the issue of common stock.

Purchased equipment inventory of $$174,500$ on account.

Sold equipment for $$203,500$ cash $($not including sales tax$).$ Sales tax of $7$ percent is collected when the merchandise is sold. The merchandise had a cost of $$128,500.$

Provided a six$-$month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to $4$ percent of sales.

Paid the sales tax to the state agency on $$153,500$ of the sales.

On September $1,$ Year $1,$ borrowed $$20,500$ from the local bank. The note had a $6$ percent interest rate and matured on March $1,$ Year $2.$

Paid $$5,700$ for warranty repairs during the year.

Paid operating expenses of $$55,000$ for the year.

Paid $$124,600$ of accounts payable.

Recorded accrued interest on the note issued in transaction no$.6.$