Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Great White Publishing completed the following transactions for one subscriber during 2018: (Click the icon to view the transactions.) Requirement 1. Journalize these transactions (explanations

image text in transcribedimage text in transcribed

Great White 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.) Start by journalizing the October 1st transaction. Recall Great White Publishing sold a one-year subscription, collecting cash of $1,600, plus sales tax of 4%. Date Debit Credit Oct Journal Entry Accounts 1 Cash Unearned Subscription Revenue Sales Tax Payable 1664 1600 64 Next, journalize the November 15th transaction. Recall Great White Publishing remitted (paid) the sales tax to the state of Ohio. More Info Date Debit Journal Entry Accounts 15 Sales Tax Payable Cash Nov 64 Oct old a one-year subscription, of $1,600, plus sale tax of 4%. The subscription will begin on October 1. Remitted (paid) the sales tax to the state of Ohio. Made the necessary adjustment at year-end. Choose from any list or enter any number in the input fields and then conti Nov 15 Dec 31 Make the necessary adjustment at year-end, December 31, to record the amount of subscription revenue earned during the year. Journal Entry Accounts Date Debit Credit 400 Dec 31 Unearned Subscription Revenue Subscription Revenue 400 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.) Balance Sheet (partial) Account Amount Current liabilities: Unearned subscription revenue 1600 am

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Processing Learn About Types Of Audits For Auditors Auditing For Dummies

Authors: Mazie Dannenberg

1st Edition

B097DGKYS7, 979-8524930576

More Books

Students also viewed these Accounting questions

Question

Describe compensating controls, and provide one example.

Answered: 1 week ago

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago