e. On which financial statement will the sales tax liability appear? The liability is shown on the
e. On which financial statement will the sales tax liability appear? The liability is shown on the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Exercise 9-4A (Algo) 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 8 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 $81,500 plus sales tax of 8 percent.
Exercise 9-4A (Algo) Part e
e. On which financial statement will the sales tax liability appear?
The liability is shown on the](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F809b3f74-5bb0-406a-abe2-b03a4030f25f%2Fc25807c9-c4be-4156-9bf7-5be1c7d2e803%2F6u1imq8_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 9-4A (Algo) 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 8 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 $81,500 plus sales tax of 8 percent.
Exercise 9-4A (Algo) Part e
e. On which financial statement will the sales tax liability appear?
The liability is shown on the
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