The following selected transactions apply to Topeca Supply for November and Dece
ID: 2396400 • Letter: T
Question
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.
a. Cash sales for November 2018 were $64,500 plus sales tax of 8 percent.
b. Topeca Supply paid the November sales tax to the state agency on December 10, 2018.
c. Cash sales for December 2018 were $83,500 plus sales tax of 8 percent.
olumn, indicate whether the item is an operating activity (OA), an investing activity or a financing activity (FA). The letters NA indicate that an element is not affected by the event. er any decreases to account balances and cash outflows with a minus sign.) 1 of 3 TOPECA SUPPLY Horizontal Statements Model Assets = Liabilities + Stockholder's Equity Income Statement Sales Tax Common+ Retained Earnings Statement Cash Flow CashPayable Stock Revenue- Expense | = | Net Income kipped Book Hint erences Prev 1 2 3 o 7 Next>Explanation / Answer
Assets Liabilities Stockholders' equity Income Statement Statement of cash flows Cash Sales tax payable Common stock Retained earnings Revenue Expense Net income 69660 5160 64500 64500 64500 69660 OA -5160 -5160 -5160 OA 90180 6680 83500 83500 83500 90180 OA d Sales tax liability = $6680 e The liability is shown on the Balance Sheet