Required information 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 $64.000 plus sales tax of 9 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 $79.500 plus sales tax of 9 percent Required information (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. Required a. Record the effect of the given transactions in a horizontal statements model. (In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities, and "IAfor investing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.) Assets TOPECA SUPPLY Horizontal Statements Model - Liabilities. Stockholder's Equity Income Statemen Sales Tax Common Retained Expense - Net Income 1. Cash sales for November Year 1 were $64,000 plus sales tax of 9 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 $79,500 plus sales tax of 9 percent. Event Statement of Cash Flows Cash I d. What is the amount of the sales tax liability as of December 31, Year 1? Sales tax liability Required information [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 $64,000 plus sales tax of 9 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 $79,500 plus sales tax of 9 percent. Required information (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. b. What was the total amount of sales tax paid in Year 1? Sales tax paid 1. Cash sales for November Year 1 were $64,000 plus sales tax of 9 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 $79,500 plus sales tax of 9 percent. j e. On which financial statement will the sales tax liability appear? The liability is shown on the Required information [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 sale but is not paid to the state sales tax agency until the following month 1. Cash sales for November Year 1 were $64,000 plus sales tax of 9 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 $79.500 plus sales tax of 9 percent. c. What was the total amount of sales tax collected in Year 1? Sales tax collected
