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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
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 $65,500, 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 $78,500, plus sales tax of 7 percent. Required a. Record the preceding transactions in general journal form. b. Show the effect of the preceding transactions in a horizontal statements model. 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. 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.) A Cash sales for November Year 1 were $65,500, plus sales tax of 7 percent. Record the transaction. B Topeca Supply paid the November sales tax to the state agency on December 10, Year 1. Record the transaction. C Cash sales for December Year 1 were $78,500, plus sales tax of 7 percent. Record the transaction. Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|} \hline Req A & Req B \end{tabular} initials OA to designate operating activity, IA for investing activity, FA for financing activity, or leave blank for not affected.) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{14}{|c|}{ TOPECA SUPPLY } \\ \hline \multicolumn{14}{|c|}{ Horizontal Statements Model } \\ \hline \multirow[b]{2}{*}{ Event } & \multirow{2}{*}{CashAssets} & \multirow{2}{*}{=} & \multirow{2}{*}{\begin{tabular}{c} Liabilities \\ Sales Tax \\ Payable \end{tabular}} & \multirow{2}{*}{+} & \multicolumn{3}{|c|}{ Stockholders' Equity } & \multicolumn{5}{|c|}{ Income Statement } & \multirow{2}{*}{\begin{tabular}{c} Statement of Cash \\ Flows \end{tabular}} \\ \hline & & & & & \begin{tabular}{c} Common \\ Stock \end{tabular} & + & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & Revenue & - & Expenses & = & Net Income & \\ \hline 1. & & =1 & & + & & +7 & & & - & & =7 & & r \\ \hline 2. & & = & & + & & + & & & - & & = & & 7 \\ \hline 3. & & = & & + & & + & & & - & & = & & 7 \\ \hline \end{tabular} 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
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