Question

Answer all questions. Ch.8-3

TransWorld Publishing completed the following transactions for one subscriber during 2018
(Click the icon to view the transactions.)
Requirement
1.Journalize these transactions (explanations not required). Then report any liability on the company's balance sheet at December 31, 2018. (Record debits first, then credits. Exclude explanations from journal entries.)
Unearned Subscription Revenue
Sales Tax Payable
2,300
276
Next, journalize the November 15th transaction. Recall TransWorld Publishing remitted (paid) the sales tax to the state of Nebraska
Journal Entry
Date
Accounts
Debit
Credit
Nov
15 Sales Tax Payable
276
Cash
276
Make the necessary adjustment at year-end, December 31, to record the amount of subscription revenue earned during the year.
Journal Entry
Date
Accounts
Debit
Credit
Dec
31 Unearned Subscription Revenue
575
Subscription Revenue
575
More Info
Oct 1
Sold a one-year subscription, collecting cash of $2,300, plus sales
tax of 12%. The subscription will begin on October 1.
Remitted (paid) the sales tax to the state of Nebraska
Made the necessary adjustment at year-end
Report the liability on the company's balance sheet at December 31, 2018. (If a box is not used in the table leave the box empty; do not select a label or enter a zero.)
Nov 15
Dec 31
Balance Sheet (partial)
Account
Amount
Print Done
Choose from any list or enter any number in the input fields and then click Check Answer
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Transcribed Image Text:TransWorld Publishing completed the following transactions for one subscriber during 2018 (Click the icon to view the transactions.) Requirement 1.Journalize these transactions (explanations not required). Then report any liability on the company's balance sheet at December 31, 2018. (Record debits first, then credits. Exclude explanations from journal entries.) Unearned Subscription Revenue Sales Tax Payable 2,300 276 Next, journalize the November 15th transaction. Recall TransWorld Publishing remitted (paid) the sales tax to the state of Nebraska Journal Entry Date Accounts Debit Credit Nov 15 Sales Tax Payable 276 Cash 276 Make the necessary adjustment at year-end, December 31, to record the amount of subscription revenue earned during the year. Journal Entry Date Accounts Debit Credit Dec 31 Unearned Subscription Revenue 575 Subscription Revenue 575 More Info Oct 1 Sold a one-year subscription, collecting cash of $2,300, plus sales tax of 12%. The subscription will begin on October 1. Remitted (paid) the sales tax to the state of Nebraska Made the necessary adjustment at year-end Report the liability on the company's balance sheet at December 31, 2018. (If a box is not used in the table leave the box empty; do not select a label or enter a zero.) Nov 15 Dec 31 Balance Sheet (partial) Account Amount Print Done Choose from any list or enter any number in the input fields and then click Check Answer
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