Subscriptions (Learning Objective 2) 5–10 min.

Pugliese Publishing Company completed the following transactions during 2014:

Sep 1 Oct 15 Dec 31 Sold 36 six-month subscriptions, collecting cash of $1,800, plus sales tax of 7%.

Remitted the sales tax to the state of Idaho.

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 Pugliese Publishing Company report on the balance sheet at December 31, 2014?

AppendixLO1