The following selected transactions were taken from the books of Ripley Company for Year 1 . 1. On February 1, Year 1, borrowed $49.000 cash from the local bank. The note had a 6 percent interest rate and was due on June 1 , Year 1 2. Cash sales for the year amounted to $235,000 plus sales tax at the rate of 6 percent. 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales. 4. Paid the sales tax to the state sales tax agency on $180,000 of the sales. 5. Paid the note due on June 1 and the related interest. 6. On November 1, Year 1 , borrowed $44,000 cash from the local bank. The note had a 6 percent interest rate and a one-year term to maturity 7. Paid $3,500 in warranty repairs. 8. A customer has filed a lawsult against Ripley for $12 million for breach of contract. The company attorney does not believe the sult. has merit. Show the effect of these transactions on the financial statements using a horizontal statements model