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 $19,000 cash plus 5 percent sales tax. The clock had originally cost GCI $15,000. Show the accounting equation effects and prepare the journal entries related to this transaction. Assume GCI uses a perpetual inventory system. 110-2 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.) Assets Liabilities Stockholders' Equity (15,000) 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 $19,000 cash plus 5 percent sales tax. The clock had originally cost GCI $15,000. Show the accounting equation effects and prepare the journal entries related to this transaction. Assume GCI uses a perpetual inventory system. M10-2 Part 2 2. Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the sales revenue of $19,000 plus 5 percent sales tax. Note: Enter debits before credits. Transaction General Journal Debit Credit