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 $195,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $120,500.
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 $145,500 of the sales.
On September 1, Year 1, borrowed $22,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, Year 2.
Paid $5,900 for warranty repairs during the year.
Paid operating expenses of $52,500 for the year.
Paid $125,300 of accounts payable.
Recorded accrued interest on the note issued in transaction no. 6.

Required
Record the given transactions in a horizontal statements model.
Prepare the income statement, balance sheet, and statement of cash flows for Year 1.
What is the total amount of current liabilities at December 31, Year 1?