Exercise A Algo Recognizing sales tax payable LO
The following selected transactions apply to Topeca Supply for November and December Year 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.
Cash sales for November Year were $ plus sales tax of percent.
Topeca Supply paid the November sales tax to the state agency on December Year
Cash sales for December Year were $ plus sales tax of percent.
Required
a Record the preceding transactions in general journal form.
b Show the effect of the preceding transactions in a horizontal statements model.
c What was the total amount of sales tax paid in Year
d What was the total amount of sales tax collected in Year
e What amount of sales tax expense will be reported on the Year income statement?
