Analyze each separate transaction from Exercise 11-2 by showing its effects on the accounting equation specifically, identify
Question:
Analyze each separate transaction from Exercise 11-2 by showing its effects on the accounting equation— specifically, identify the accounts and amounts (including + or –) for each transaction.
Data From Exercise 11-2
1. On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions.
2. On November 3, the Milwaukee Bucks sold a six-game pack of advance tickets for $300 cash. On November 20, the Bucks played the first game of the six-game pack (this represented one-sixth of the advance ticket sales). Record the entries for the November 3 and November 20 transactions.
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