c. What was the total amount of sales tax paid in Year 1?d. What was the total amount of sales tax collected in Year 1?e. What amount of sales tax expense will be reported on the Year 1 income statement?C.d.e.Sales tax paidSales tax collectedSales tax expense$$$4,58510,43010,430 X The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month ofoperations. 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 7 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 7 percent.

Sales tax is indirect tax which is collected by seller on from buyers. This sales tax to be paid by…

c. What was the total amount of sales tax paid in Year 1? d. What was the total amount of sales tax collected in Year 1? e. What amount of sales tax expense will be reported on the Year 1 income statement? C. d. e. Sales tax paid Sales tax collected Sales tax expense $ $ $ 4,585 10,430 10,430 X

c. What was the total amount of sales tax paid in Year 1? d. What was the total amount of sales tax collected in Year 1? e. What amount of sales tax expense will be reported on the Year 1 income statement? C. d. e. Sales tax paid Sales tax collected Sales tax expense $ $ $ 4,585 10,430 10,430 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

c. What was the total amount of sales tax paid in Year 1?
d. What was the total amount of sales tax collected in Year 1?
e. What amount of sales tax expense will be reported on the Year 1 income statement?
C.
d.
e.
Sales tax paid
Sales tax collected
Sales tax expense
$
$
$
4,585
10,430
10,430 X

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 7 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 7 percent.

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