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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
Transcribed Image Text: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.
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