Sales Tax Transactions

Illustrate the effects on the accounts and financial statements of recording the following selected transactions. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases, cash outflows, and the cost of merchandise sold as negative amounts.

a. Sold $11,250 of merchandise on account, subject to a sales tax of 6%. The cost of the merchandise sold was $6,750.

Statement of Cash Flows	Balance Sheet								Income Statement
	Assets			=	Liabilities	+	Stockholders' Equity
		+		=		+
Statement of Cash Flows								Income Statement

b. Paid $63,120 to the state sales tax department for taxes collected.

Statement of Cash Flows	Balance Sheet								Income Statement
	Assets			=	Liabilities	+	Stockholders' Equity
		+		=		+
Statement of Cash Flows								Income Statement

llustrate the effacts on the accounts and financial statements of recording the following selected transactions. If no account or activity is affected, select "No effact from the dropdown list and leave the corresponding number entry box blank. Enter account decreases, cash outhows, and the cost of merchandise sold as negative amounts. a. Sold 11,250 of merchandise on account. Subject to a sales tax of 6%. The cost of the merchandise sold was .750. Statement of Cash Incomne Assets Liabilities + Stockholders Equity Flows Statement Statement of Cash Flows Income Statement b. Paid $63,120 to the state sales tax department for taxes collected. Balance Sheot Statement of Cash Income Assets Liabilities Stockholdors Equity Flows Statement Statement of Cash Flows