Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $165,000 plus sales tax of 7 percent. 2. Topeca Supply pald the November sales tax to the state agency on December 10, Year 1. 3. Cash sales for December, Year 1 were $180,000 plus sales tax of 7 percent Required a. Show the effect of the above transactions on a statements model like the one shown as follows. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (1A), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. b. What was the total amount of sales tax paid in Year 1? c. What was the total amount of sales tax collected in Year 1? d. What is the amount of the sales tax liability as of December 31, Year 1? e. On which financial statement will the sales tax liability appear? Complete this question by entering your answers in the tabs below. Reg A Req B to E Show the effect of the above transactions on a statements model like the one shown as follows. In the Cash Flow column, indica activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell bla balances and cash outflows with a minus sign. Not all cells will require entry) TOPECA SUPPLY Horizontal Statements Model Stockholder's Equity Income Statement Common Net Income Expense Stock Earnings Statement of Cash Flows Assets Retained Revenge Event Liabilities Sales Tax Payable Cash 1. 2 3 > Bed to cumICLE LED YUCILIUN WY CHILLY your answei Req A Req B to E b. What was the total amount of sales tax paid in Year 1? c. What was the total amount of sales tax collected in Year 1? d. What is the amount of the sales tax liability as of December 31, Year 1? e. On which financial statement will the sales tax liability appear? b. Sales tax paid C. Sales tax collected d. Sales tax liability e. The liability is shown on the Req A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ecology, Sustainable Development And Accounting

Authors: Seleshi Sisaye

1st Edition

0415816351, 9780415816359

More Books

Students also viewed these Accounting questions