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The following selected transactions apply to Topeco 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 Topeco 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. Cosh sales for December Year 1 were $81,500, 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? > Cash sales for December Year 1 were $81,500, plus sales tax of 7 percent. Record the transaction. Note: Enter debits before credits. Event General Journal Debit Credit 3 Complete this question by entering your answers in the tabs below. Red A Req8 Reg C to E Show the effect of the preceding transactions in a horizontal statements model (Enter any decreases to account balances with a minus sign. In the Cash Flow Initials A to designate operating activity, IA for investing activity, FA for financing activity, or leave blank for not affected) TOPECA SUPPLY Horizontal Statements Model Assets Liabilities Stockholders' Equity Income Statement Statement of Cash Event Sales Tax Common Retained Cash Flows Payable Revenue Net Income Stock Earnings Expenses 1 2 3 Complete this question by entering your answers in the tabs below. Req A ReqB Req C to E 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? Sales tax paid d. Sales tax collected Sales tax expense c. e e

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