The following selected transactions apply to Topech Supply for November and December Year 1. November was the first month of operations Sales taxis 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 I 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 I were $80,500 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 (1A), 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 12 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? Dan Dayle started a business by Issuing an $81,000 face value note to First State Bank on January 1. Year 1. The note had an 7 percent annual rate of interest and a five-year term. Payments of $19,755 are to be made each December 31 for five years, Required a. What portion of the December 31, Year 1. payment is applied to interest expense and principal? b. What is the principal balance on January 1, Year 2? c. What portion of the December 31, Year 2, payment is applied to interest expense and principal? (Round your answers to the nearest dollar amount.) a. Interest expense Principal b. Principal balance c. Interest expenso Principal Colson Company has a line of credit with Federal Bank Colson can borrow up to $464,500 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.00 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.00 percent (4.00 percent +2.00 percent) annual Interest on $80,100 for the month of January out Borrowed Prime rate for Month (paid) 4.000 February 119.600 3.00 March (20,200 April the Month January 0.100 3.50 4.00 32.300 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of Colson's liability at the end of each of the first four months. The following transactions apply to Pecan Co. for Yeart, its first year of operations 1. Received $31,000 cash in exchange for issuance of common stock. 2. Secured a $118,000 ten-year installment loan from State Bank. The interest rate is 4 percent and annual payments are $14,548 3. Purchased land for $28,000. 4. Provided services for $90,000 5. Paid other operating expenses of $36,000 6. Pald the annual payment on the loan. Required a. Organize the transaction data in accounts under an accounting equation b. Prepare an income statement and balance sheet for Year 1 c. What is the interest expense for Year 2? Year 3? The following selected transactions apply to Topech Supply for November and December Year 1. November was the first month of operations Sales taxis 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 I 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 I were $80,500 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 (1A), 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 12 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? Dan Dayle started a business by Issuing an $81,000 face value note to First State Bank on January 1. Year 1. The note had an 7 percent annual rate of interest and a five-year term. Payments of $19,755 are to be made each December 31 for five years, Required a. What portion of the December 31, Year 1. payment is applied to interest expense and principal? b. What is the principal balance on January 1, Year 2? c. What portion of the December 31, Year 2, payment is applied to interest expense and principal? (Round your answers to the nearest dollar amount.) a. Interest expense Principal b. Principal balance c. Interest expenso Principal Colson Company has a line of credit with Federal Bank Colson can borrow up to $464,500 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.00 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.00 percent (4.00 percent +2.00 percent) annual Interest on $80,100 for the month of January out Borrowed Prime rate for Month (paid) 4.000 February 119.600 3.00 March (20,200 April the Month January 0.100 3.50 4.00 32.300 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of Colson's liability at the end of each of the first four months. The following transactions apply to Pecan Co. for Yeart, its first year of operations 1. Received $31,000 cash in exchange for issuance of common stock. 2. Secured a $118,000 ten-year installment loan from State Bank. The interest rate is 4 percent and annual payments are $14,548 3. Purchased land for $28,000. 4. Provided services for $90,000 5. Paid other operating expenses of $36,000 6. Pald the annual payment on the loan. Required a. Organize the transaction data in accounts under an accounting equation b. Prepare an income statement and balance sheet for Year 1 c. What is the interest expense for Year 2? Year 3