The following selected transactions apply to Quick Mart for November and December 2010. 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 2010 were $72,000 plus sales tax of 8 percent.
2. Quick Mart paid the November sales tax to the state agency on December 10, 2010.
3. Cash sales for December 2010 were $96,000 plus sales tax of 8 percent.
Required
a. Show the effect of the above transactions on a statements model like the one shown
below.

b. What was the total amount of sales tax paid in 2010?
c. What was the total amount of sales tax collected in 2010?
d. What is the amount of the sales tax liability as of December 31, 2010?
e. On what financial statement will the sales tax liabilityappear?

AssetsLiabilities + Equity Income Statement Cash = Sales Tax Pay. + Com. Stk. + Ret Earn. Rev.-Exp.= Net Inc. Cash Flow