question 2
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Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below] 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 6 percent. 2. Topeca Supply pald the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December Year 1 were $81,000 plus sales tax of 6 percent. Exercise 9-4A (Algo) Part a Required . Record the effect of the given transactions in a horizontal statements model. Note: In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities, and "IA" for investing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and Decem month of operations. Sales tax is collected at the time of sale but is not paid to the sta following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 6 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10 , 3. Cash sales for December Year 1 were $81,000 plus sales tax of 6 percent. Exercise 9-4A (Algo) Part c c. What was the total amount of sales tax collected in Year 1 ? Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December month of operations. Sales tax is collected at the time of sale but is not paid to the state sal following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 6 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 $81,000 plus sales tax of 6 percent. Exercise 9-4A (Algo) Part b b. What was the total amount of sales tax paid in Year 1? Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and Dece month of operations. Sales tax is collected at the time of sale but is not paid to the s following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 6 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10 3. Cash sales for December Year 1 were $81,000 plus sales tax of 6 percent. Exercise 9-4A (Algo) Part e e. On which financial statement will the sales tax liability appear? Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below.] The following selected transactions apply to Topeca Supply for November and December month of operations. Sales tax is collected at the time of sale but is not paid to the state sa following month. 1. Cash sales for November Year 1 were $65,500 plus sales tax of 6 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, Year 3. Cash sales for December Year 1 were $81,000 plus sales tax of 6 percent. Exercise 9-4A (Algo) Part d d. What is the amount of the sales tax liability as of December 31 , Year 1
