IThe following information applies to the questions displaye

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

Solution

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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