1. On July 15, Piper Company sold $12,000 of merchandise (costing $6,000) for cash. The sales...

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1. On July 15, Piper Company sold $12,000 of merchandise (costing $6,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. 2. On November 3, the Milwaukee Bucks sold a six-game pack of advance tickets for $360 cash. On November 20, the Bucks played the first game of the six-game pack (this represented one-sixth of the advance ticket sales). Exercise 9-3 (Algo) Financial statement impact of current liability transactions LO C2 Analyze each separate transaction by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. Note: Enter all amounts as positive values. Date July 15 Cash Merchandise July 15 inventory August 1 Cash Assets (+) increase (-) decrease (-) decrease Liabilities Equity 12,480 12,000 6,000 = Sales taxes payable (-) decrease Cost of goods sold (-) decrease 480 +Services revenue 6,000+ (+) increase 120,000 November Cash (+) increase 360 = + 3 November 20 Unearned ticket revenue (+) increase 60+ 1. On July 15, Piper Company sold $12,000 of merchandise (costing $6,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. 2. On November 3, the Milwaukee Bucks sold a six-game pack of advance tickets for $360 cash. On November 20, the Bucks played the first game of the six-game pack (this represented one-sixth of the advance ticket sales). Exercise 9-3 (Algo) Financial statement impact of current liability transactions LO C2 Analyze each separate transaction by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. Note: Enter all amounts as positive values. Date July 15 Cash Merchandise July 15 inventory August 1 Cash Assets (+) increase (-) decrease (-) decrease Liabilities Equity 12,480 12,000 6,000 = Sales taxes payable (-) decrease Cost of goods sold (-) decrease 480 +Services revenue 6,000+ (+) increase 120,000 November Cash (+) increase 360 = + 3 November 20 Unearned ticket revenue (+) increase 60+

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Your analysis is absolutely correctLets break down each transaction Transaction 1 July 15th Sale Cas... View the full answer