The following selected transactions are taken from the Aliceville Company books for 2014

1.	On March 1, 2014, he borrowed $48,000 in cash from the local bank. The note carried an interest rate of 8 percent and matured on September 1, 2014.
2.	Cash sales for the year were $230,000 plus sales tax at the rate of 8 percent.
3.	Aliceville offers a 90-day warranty on merchandise sold. The warranty expense is estimated at 4 percent of sales.
4.	You paid sales tax to the state sales tax agency on $185,000 of sales.
5.	He paid the promissory note maturing on September 1 and the corresponding interest.
6.	On October 1, 2014, he borrowed $45,000 in cash from the local bank. The note had an interest rate of 8 percent and a maturity of one year.
7.	You paid $3,100 in warranty repairs.
8.	A client has filed a lawsuit against Aliceville for $80,000 for breach of contract. The company's lawyer does not believe the lawsuit has merit.

Show the effect of these transactions on the financial statements using a horizontal statement model 

In the Cash Flow column, indicate whether the item is an Operating Activity (OA), Investing Activity (IA), or Financing Activity (FA) and NA if unaffected..

Answer rating: 100% (QA)

Representation of the selected transactions on the financial statements using a horizontal statement ... View the full answer