Required information [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 $10,500 cash plus 4 percent sales tax. The clock had originally cost GCI $6,500. Show the accounting equation effects and prepare the journal entries related to this transaction. Assume GCI uses a perpetual inventory system. 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.) X Answer is complete but not entirely correct. Assets Liabilities Sales Tax Payable Cash 500 X 10,500 (6,500) Stockholders' Equity Sales Revenue Cost of Goods Sold 10,000 X 500 X Inventories