Question

The following selected transactions apply to Topeca Supply for November and December 2016.
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 2016 were $165,000 plus sales tax of 7 percent.
2. Topeca Supply paid the November sales tax to the state agency on December 10, 2016.
3. Cash sales for December 2016 were $180,000 plus sales tax of 7 percent.
Required
a. Record the above transactions in general journal form.
b. Show the effect of the above transactions on a horizontal statements model like the one shown below.
c. What was the total amount of sales tax paid in 2016?
d. What was the total amount of sales tax collected in 2016?
e. What amount of sales tax expense will be reported on the 2016 income statement?


$1.99
Sales8
Views148
Comments0
  • CreatedApril 20, 2015
  • Files Included
Post your question
5000