Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need some help please! 1. Cash sales for November, Year 1 were $165,000 plus sales tax of 7 percent. 2. Topeca Supply paid the November
Need some help please!
1. Cash sales for November, Year 1 were $165,000 plus sales tax of 7 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 $180,000 plus sales tax of 7 percent Required a. Show the effect of the above transactions on a statements model like the one shown as follows. In the Cash Flow column, Indicate whether the item is an operating activity (OA), an investing activity (A), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. b. What was the total amount of sales tax paid in Year 1? c. What was the total amount of sales tax collected in Year 1? d. What is the amount of the sales tax liability as of December 31, Year 1? e. On which financial statement will the sales tax liability appear? Complete this question by entering your answers in the tabs below. Reg A Req B to E Show the effect of the above transactions on a statements model like the one shown as follows. In the Cash Flow column, indicate whether the item is activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. (Enter any decreas balances and cash outflows with a minus sign. Not all cells will require entry) TOPECA SUPPLY Horizontal Statements Model Assets Llabilities Stockholder's Equity Income Statement Statement of Event Sales Tax Common Retained Cash Revenue Expense Stock Net Income Cash Flows Payable Earnings 1. 2 3 a. Show the effect of the above transactions on a statements model like the one shown as follows. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. b. What was the total amount of sales tax paid in Year 1? c. What was the total amount of sales tax collected in Year 1? d. What is the amount of the sales tax liability as of December 31, Year 12 e. On which financial statement will the sales tax liability appear? Complete this question by entering your answers in the tabs below. Req A Reg B to E b. What was the total amount of sales tax paid in Year 17 c. What was the total amount of sales tax collected in Year 1? d. What is the amount of the sales tax liability as of December 31, Year 1? e. On which financial statement will the sales tax liability appear? Show less b. Sales tax paid c Sales tax collected d. Sales tax lability The liability is shown on the Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started