Question

mework Required Information Exercise 9.4A Recognizing sales tax payable LO 9-2 [The following information applies to the questions displayed below 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 $65,500 plus sales tax of 6 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 $83,500 plus sales tax of 6 percent. Exercise 9.4A Part a Required a. Record the acquisition of the intangible assets and the related amortization expense for Year in a horizontal statements mode shown below. In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities, and "IA" for Investing activity. Enter any decreases to account balances with a minus sign. Not all cells in the Statement of Cash Flowe" column may require an input. leave cells blank if there is no corresponding input needed.) TOPECA SUPPLY Horizontal Statements Model Stockholder's Equity income Statement Retained Revenue - Expense - Net Income Earnings Assets Liabilities Sales Tax Event Next > Payable of 14 !!! < Prev 23 = 9

Answer 1

Assets + Income Statement TOPECA SUPPLY Horizontal Statements Model Stockholders' Equity Common Retained Revenue Stock Earnings 69430 65500 Event Statement of Cash Flows Cash Expense Liabilities Sales Tax Payable 3930 -3930 = Net Income 1 = 65500 69430 -3930 69430 -3930 OA 3 88510 = 5010 + + 88510 835002 83500885100A Event 1: Sales Tax Payable = $65,500 * 6% Sales Tax Payable = $3,930 Event 2: Sales Tax Payable = $83,500 * 6% Sales Tax Payable = $5,010