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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

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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 to, Year 1. 3. Cash sales for December, Year 1 , were $180,000 plus sales tax of 7 percent. Required: a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). 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. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the modei. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities. (LA), or financing activities (FA). Note: Enter any decreases to account balances and cash outhows with a minus sign. Leave cells blank if no input is needed

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