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Required information The following information applies to the questions displayed below.) Grandpa Clocks, Inc. (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI solls a grandfather clock for $12,500 cash plus 4 percent sales tax. The clock had originally cost GCI $8,500. Show the accounting equation effects and prepare the journal entries related to this transaction Assume GCI uses a perpetual inventory system. 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, Habilities, or stockholders equity with a minus sign.) Assets Liabilities Stockholders' Equity (8,500) Required information The following information applies to the questions displayed below.) Grandpa Clocks, Inc. (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GC sells a grandfather clock for $12,500 cash plus 4 percent sales tax. The clock had originally cost GCI $8,500. Show the accounting equation effects and prepare the journal entries related to this transaction. Assume GCI uses a perpetual inventory system. 2. Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet

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