Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 6 percent. Vail engaged in the following transactions during the year. Sales tax of 6 percent is collected on all sales. 1. Book sales, not including sales tax, for the year amounted to $272,000 cash. 2. Cash sales of miscellaneous items for the year were $150,000, not including tax. 3. Cost of goods sold was $211,000 for the year. 4. Paid $129,000 in operating expenses for the year. 5. Paid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. What is the Vail Book Mart's net income for the year? a. Sales tax collected b. Net income The Chair Company provides a 120-day parts-and-labor warranty on all merchandise it sells. The Chair Company estimates the warranty expense for the current period to be $1,080. During the period a customer returned a product that cost $810 to repair. Required a. Show the effects of these transactions on the financial statements using a horizontal statements model like the example shown here. Use a + to indicate increase or a for decrease. if the element is not affected, leave the cell blank. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). (Not all cells will require entry.) CHAIR COMPANY Horizontal Statements Model Balance Sheet Income Statement = Liabilities + Stockholder's Revenue Expense = Net Income Equity Statement of Cash Flow Event Assets Estimates = = + + Paid =