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Assume the National Post completed the following transactions for one subscriber during 2020: Oct. 1 Sold a six-month subscription, collecting cash of $100 plus PST
Assume the National Post completed the following transactions for one subscriber during 2020:
Oct. 1 | Sold a six-month subscription, collecting cash of $100 plus PST of8 percent and GST of 5 percent. |
Nov. 15 | Remitted (paid) the PST to the Province of Manitoba and the GST to the Receiver General. |
Dec. 31 | Made the necessary adjustment at year end to record the amount of subscription revenue earned during the year. |
Required
1. | Using the account title Unearned Subscription Revenue, journalize the transactions above. |
2. | Post the entries to the Unearned Subscription Revenue T-account. How much does the National Post owe the subscriber at December 31, 2020? |
3. | How would the entries in Requirement 1 be different if the National Post were in a different province that uses a 12 percent HST rate? Record the entries. |
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