Exercise 9-4A Recognizing sales tax payable LO 9-2 The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $65,500. plus sales tax of 10 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10. Year 1. 3. Cash sales for December Year 1 were $79.000. plus sales tax of 10 percent. Required a. Record the preceding transactions in general journal form. b. Show the effect of the preceding transactions on a horizontal statements model like the one shown next. c. What was the total amount of sales tax paid in Year 1? d. What was the total amount of sales tax collected in Year 1? e. What amount of sales tax expense will be reported on the Year 1 income statement? Complete this question by entering your answers in the tabs below. Rega Reg B Reg C to E Record the preceding transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list > Cash sales for November Year 1 were $65,500, plus sales tax of 10 percent. arcent. B Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. C Cash sales for December Year 1 were $79,000, plus sales tax of 10 percent. Credit Note : = journal entry has been entered Record entry Clear entry View general journal Reg A Reg B Reg C to E Show the effect of the preceding transactions on a horizontal statements model like the one shown next. (Enter any decreases to account balances with a minus sign. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, or NA for not affected.) Assets Stockholder's Equity Income Statement Cash Sales Tax Common Retained Expenses Payable Earnings Liabilities Cash Flows Event Revenue Net Income Stock 1. 2. 3. Reg A Reg B Req C to E What was the total amount of sales tax paid in Year 1? What was the total amount of sales tax collected in Year 1? What amount of sales tax expense will be reported on the Year 1 income statement? d. Sales tax paid Sales tax collected Sales tax expense e. Cash sales for November Year 1 were $65,500, plus sales tax of 10 percent. arcent. B Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. C Cash sales for December Year 1 were $79,000, plus sales tax of 10 percent. Credit Note : = journal entry has been entered Record entry Clear entry View general journal Reg A Reg B Reg C to E Show the effect of the preceding transactions on a horizontal statements model like the one shown next. (Enter any decreases to account balances with a minus sign. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, or NA for not affected.) Assets Stockholder's Equity Income Statement Cash Sales Tax Common Retained Expenses Payable Earnings Liabilities Cash Flows Event Revenue Net Income Stock 1. 2. 3. Reg A Reg B Req C to E What was the total amount of sales tax paid in Year 1? What was the total amount of sales tax collected in Year 1? What amount of sales tax expense will be reported on the Year 1 income statement? d. Sales tax paid Sales tax collected Sales tax expense e.
