Adirondack Publishing Company completed the following transactions during 2016: Aug 1 Sold 30 six-month subscriptions, collecting cash

Question:

Adirondack Publishing Company completed the following transactions during 2016:

Aug 1 Sold 30 six-month subscriptions, collecting cash of $1,500, plus sales tax of 7%.

Sep 15 Remitted the sales tax to the state of Alabama.

Dec 31 Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year.

Requirements

1. Journalize these transactions. Explanations are not required.

2. What amounts would Adirondack Publishing Company report on the balance sheet at December 31, 2016?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...