Question

The following selected transactions apply to Book Yard Store 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.
a. Cash Sales for Nov Year 1 were $100,000 plus sales tax of 9%.
b. Book Yard the Nov sales tax to the state agency on Dec 7, Year 1.
c. Cash Sales for Dec Year 1 were $80,000 plus sales tax of 9%.

Answer 1

Answer:

The question requires that you show the effect of the previous transactions on a statements model. Since there is not enough room here, I prepared the attached excel spreadsheet.

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