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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

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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 $64.500, plus sales tax of 7 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 $81,500, plus sales tax of 7 percent Required a. Record the preceding transactions in general journal form. b. Show the effect of the preceding transactions on a horizontal statements model like the one shown next c. What was the total amount of sales tax paid in Year 1? d. What was the total amount of sales tax collected in Year 1? e. What amount of sales tax expense will be reported on the Year 1 income statement? Journal entry worksheet A Cash sales for November Year 1 were $64,500, plus sales tax of 7 percent. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general Journal Journal entry worksheet Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal View transaction list Journal entry worksheet B B Cash sales for December Year 1 were $81,500, plus sales tax of 7 percent. Note: Enter debits before credits Event General Journal Debit Credit 3 Record entry Clear entry View general Journal Show the effect of the preceding transactions on a horizontal statements model like the one shown next. (Enter any decreases to account balances with a minus sign. Int Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, or NA for not affected.) Assets Liabilities Stockholder's Equity Income Statement Sales Tax Cash Flows Common Event Cash Retained Payable Net Income Stock Revenue Earnings Expenses 1. 2 3 Req A Req B Req C to E What was the total amount of sales tax paid in Year 1? What was the total amount of sales tax collected in Year 1? What amount of sales tax expense will be reported on the Year 1 income statement? C. Sales tax paid d. Sales tax collected e. Sales tax expense

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