Required information M10-2 Recording Sales and State Tax [LO 10-2 [The following information applies to the questions displayed below. Grandpa Clocks, Inc. (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells a grandfather clock for $17,500 cash plus 6 percent sales tax. The clock had originally cost GCI $13,500. Show the accounting equation effects and prepare the journal entries related to this transaction. Assume GCl uses a perpetual inventory system. M10-2 Part 1 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.) Assets Liabilities Stockholders' Equity (13,500)