Required information

Exercise $9-8$A $($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 $\backslash (\backslash$$ $48,500\backslash )$ from the issue of common stock.

$2.$ Purchased equipment inventory of $\backslash (\backslash$$ $175,500\backslash )$ on account.

$3.$ Sold equipment for $\backslash (\backslash$$ $194,500\backslash )$ cash $($not including sales tax$).$ Sales tax of $6$ percent is collected when the merchandise is sold. The merchandise had a cost of $\backslash (\backslash$$ $119,500\backslash ).$

$4.$ 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 $\backslash (\backslash$$ $144,500\backslash )$ of the sales.

$6.$ On September $1,$ Year $1,$ borrowed $\backslash (\backslash$$ $19,000\backslash )$ from the local bank. The note had a $6$ percent interest rate and matured on March $1,$ Year $2.$

$7.$ Paid $\backslash (\backslash$$ $5,700\backslash )$ for warranty repairs during the year.

$8.$ Paid operating expenses of $\backslash (\backslash$$ $53,000\backslash )$ for the year.

$9.$ Paid $\backslash (\backslash$$ $124,100\backslash )$ of accounts payable.

$10.$ Recorded accrued interest on the note issued in transaction no$.6.$

Exercise $9-8$A $($Algo$)$ Part b

b$-1.$ Prepare the income statement for Year $1.$

Note: Round your answers to the nearest dollar amount.

OZARK SALES

Income Statement

For the Year Ended December $31,$ Year $1$