IThe following information applies to the questions displayed below] Heines Cloc

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IThe following information applies to the questions displayed below] Heines Clocks is a retaller of wall, mantle, and grandfather clocks and is located in the Empire Mall in Sioux Falls, South Dakota. Assume that a grandfather clock was sold for $11,000 cash plus 4 percent sales tax. The clock had originally cost Helnes $7,000. Assume Helnes uses a perpetual Inventory system 10.00 points 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders Equity

Explanation / Answer

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Assets Amount = liabilities Amount + Stockholder's equity Amount inventory (7000) = sales tax payable 440 + sales revenue 11000 Cash 11440 cost of goods sold (7000) 4440 = 440 + 4000

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