1 Required information [The following information applies to the questions displayed below.] Part 1 of 5 The following selected transactions apply to Topeca Supply for November and December 2018. 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. eBook 1. Cash sales for November 2018 were $64,500 plus sales tax of 8 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, 2018. 3. Cash sales for December 2018 were $82,500 plus sales tax of 8 percent. Hint Ask Print 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. (Enter any decreases to account balances and cash outflows with a minus sign.) TOPECA SUPPLY Horizontal Statements Model Assets Liabilities Stockholder's Equity Income Statement Statement of Cash Flows Event Retained Earnings Sales Tax Common Stock Cash Revenue Expense = Net Income Payable 1. 2. 3.

1 Required information [The following information applies to the questions displayed below.] Part 1 of 5 The following selected transactions apply to Topeca Supply for November and December 2018. 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. eBook 1. Cash sales for November 2018 were $64,500 plus sales tax of 8 percent. 2. Topeca Supply paid the November sales tax to the state agency on December 10, 2018. 3. Cash sales for December 2018 were $82,500 plus sales tax of 8 percent. Hint Ask Print 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. (Enter any decreases to account balances and cash outflows with a minus sign.) TOPECA SUPPLY Horizontal Statements Model Assets Liabilities Stockholder's Equity Income Statement Statement of Cash Flows Event Retained Earnings Sales Tax Common Stock Cash Revenue Expense = Net Income Payable 1. 2. 3.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 12P

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