Question: The following selected transactions apply to Topeca Supply for November and December, Year 1. November was the first month o operations. Sales tax is collected

 The following selected transactions apply to Topeca Supply for November and

December, Year 1. November was the first month o operations. Sales tax

The following selected transactions apply to Topeca Supply for November and December, Year 1. November was the first month o 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 $165 , 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 $180 , 000 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 th 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 liablity as of December 31, Year 1? e. On which financial statement will the sales tax liability appea

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