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
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 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. 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? Complete this question by entering your answers in the tabs below. Req A ReqB Reg C to E Record the preceding transactions in general Journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Cash sales for November Year 1 were $165,000, plus sales tax of 7 percent. 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 Journal entry worksheet A B Cash sales for December Year 1 were $180,000, plus sales tax of 7 percent. Note: Enter debits before credits. Event 3 General Journal Debit Credit 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? Complete this question by entering your answers in the tabs below. RAGA Red B Reg C to E 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. In 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 Sales Tax Payable Stockholder's Equity Common Retained Stock Earnings Income Statement Expenses - Net Income Cash Flows Event Cash Revenue 1. 2 3 (RGA Regtos > Req A Reg 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

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

Financial Accounting

Authors: Robert Libby

1st Canadian Edition

0070891737, 978-0070891739

More Books

Students also viewed these Accounting questions

Question

How reliable is this existing information?

Answered: 1 week ago