The following selected transactions apply to Topeca Supply for November and December, Year 1. November was...
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The following selected transactions apply to Topeca 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 $66,000 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 1 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 (IA), 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 1? 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? Complete this question by entering your answers in the tabs below. Req A Req B to E 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 oper activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. (Enter any decreases to acr balances and cash outflows with a minus sign. Not all cells will require entry.) TOPECA SUPPLY Horizontal Statements Model. Assets Event Cash Liabilities Sales Tax Payable Stockholder's Equity Common Income Statement Stock Retained Earnings Revenue Expense Net Income Statement of Cash Flows 1. 2. 3. + Drou 1 of 3 Next > The following selected transactions apply to Topeca 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 $66,000 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 1 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 (IA), 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 1? 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? Complete this question by entering your answers in the tabs below. Req A Req B to E 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 oper activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. (Enter any decreases to acr balances and cash outflows with a minus sign. Not all cells will require entry.) TOPECA SUPPLY Horizontal Statements Model. Assets Event Cash Liabilities Sales Tax Payable Stockholder's Equity Common Income Statement Stock Retained Earnings Revenue Expense Net Income Statement of Cash Flows 1. 2. 3. + Drou 1 of 3 Next >
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a Effect of Transactions on Statements Model Event Cash Sales Tax Payable Common Stock Retained Earn... View the full answer
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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