Required information M10-2 (Algo) Recording Sales and State Tax [LO 10-2] [The following information applies to the questions displayed below.] Grandpa Clocks, Incorporated (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells a grandfather clock for $13,000 cash plus 5 percent sales tax. The clock had originally cost GCI $9,000. Assume GCI uses a perpetual inventory system. M10-2 (Algo) Part 1 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.) Cash Inventory Assets 13,650 (9,000) = Liabilities Sales Tax Payable Stockholders' Equity 650 + +

K110.

A trucking company buys 22,275 gallons of gasoline. The federal excise tax is $0.165 per gallon find the amount of excise tax due. Round your answer to the nearest cent. Answer key A-3,180.38 B-3,658.88 C-3,675.38 D-3,840.38

Cheyenne Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $10,812. All sales are subject to a 6% sales tax. (a1) Compute sales taxes payable. Sales taxes payable $ eTextbook and Media List of Accounts Save for Later Attempts: unlimited Submit Answer (a2)

! Required information PA6-5 (Algo) Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6- 6] [The following information applies to the questions displayed below.) Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format): Net Sales Cost of Goods Sold BIG TOMMY CORPORATION Profit and Loss December 31 Debit Credit $342,600 $247,000 50,000 10,000 1,000 10,380 24,220 $342,600 $342,600 Salaries and Wages Expense Office Expense Travel Expenses Income Tax Expense Net Profit Totals PA6-5 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage %

[The following information applies to the questions displayed below.] Grandpa Clocks, Incorporated (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells a grandfather clock for $13,500 cash plus 4 percent sales tax. The clock had originally cost GCI $9,500. Assume GCI uses a perpetual inventory system. 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.) Assets Liabilities + + Stockholders' Equity

Federal Aviation purchases 17,700 gallons of aviation fuel. The federal excise tax is $0.19 per gallon. Find the amount of the excise tax for this transaction. (Round your answer to the nearest cent.) A. $1,681.50 B. $1,710.00     C. $3,230.00 D. $3,363.00