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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 $165,000 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 $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 (IA), 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? Req A Reg 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, indicate whether the item is an op activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. (Enter any decreases to balances and cash outflows with a minus sign. Not all cells will require edtry) 5 Assets TOPECA SUPPLY Horizontal Statements Model Stockholder's Equity Income Statement Common Retained Revenue Stock Earnings Expense Net Income Liabilities Sales Tax Payable Event Cash Statement of Cash Flow 1. 2 3 Req B to E> 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? es b. C. c Sales tax paid Sales tax collected Sales tax liability The liability is shown on the d. e.

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