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 64,500 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 80,500 plus sales tax of 8 percent. a. show the effect of the above transactions on a statements model.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 64,500 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 80,500 plus sales tax of 8 percent.

a. show the effect of the above transactions on a statements model.

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