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Required information

M$10-2($Static$)$ Recording Sales and State Tax $[$LO $10-2]$

$[$The following information applies to the questions displayed below.$]$

Grandpa Clocks, Incorporated $($GCI$),$ is a retailer of wall, mantle, and grandfather clocks. Assume GCl sells a grandfather

clock for $$10,000$ cash plus $4$ percent sales tax. The clock had originally cost $GCl$$$6,000.$ Assume $GCl$ uses a perpetual

inventory system.

M$10-2($Static$)$ Part $1$

Indicate the effects of the amounts for the above transactions. $($Enter any decreases to assets, liabilities, or stockholders equity

with a minus sign.$)$