What is the total amount of current liabilities at December

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Question - The following transactions apply to Ozark Sales for 2018:

1. The business was started when the company received $48,000 from the issue of common stock.

2. Purchased equipment inventory of $176,000 on account.

3. Sold equipment for $192,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $117,000.

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 $142,000 of the sales.

6. On September 1, 2018, borrowed $19,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, 2019.

7. Paid $6,000 for warranty repairs during the year.

8. Paid operating expenses of $52,000 for the year.

9. Paid $124,300 of accounts payable.

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

Required - What is the total amount of current liabilities at December 31, 2018?

Reference no: EM132499923

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