Check all that apply! Knowledge Check 01 Assume a cash sale of $10,000 during a company's...

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Knowledge Check 01 Assume a cash sale of $10,000 during a companys first month of operations and the related sales tax collected from the customer in the amount of $1,000 has not yet been remitted to the state. How will this transaction affect the companys financial statements prepared on the last day of that month? (Select all that apply.) Check All That Apply Deferred revenue of $1,000 will be reported as a liability on the belance sheet Current Wabilities in the amount of $1,000 will be reported on the balance sheet Sales revenue of $9,000 will be reported on the income statement Prex of 13 Next MacBook Air

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Answer 1

Answer #1

Journal entry

Date	account and explanation	debit	credit
	Cash	11000
	Sales revenue		10000
	Sales tax payable		1000

So answer is :

b) Current liabilities in the amount of $1000 will be reported on the balance sheet.

d) Sales revenue of $10000 will be reported on the income statement

so answer is b and d

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Answer 2

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