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[The following information applies to the questions displayed below.] The following selected transactions apply...

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Accounting

[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 $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.

b. What was the total amount of sales tax paid in Year 1?

Sales tax paid

c. What was the total amount of sales tax collected in Year 1?

Sales tax collected

d. What is the amount of the sales tax liability as of December 31, Year 1?

Sales tax liability

e. On which financial statement will the sales tax liability appear?

The liability is shown on the

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