Ocean Blue Publishing completed the following transactions for one subscriber during $2021$:

$($Click the icon to view the transactions.$)$

Requirement

Journalize these transactions $($explanations not required$).$ Then report any liability on the company's balance sheet at December $31,2021.($Record debits first, then credits. Exclude

explanations from journal entries.$)$

Start by journalizing the October $1$st transaction. Recall Ocean Blue Publishing sold a one$-$year subscription, collecting cash of $$2,000,$ plus sales tax of $10\%.$

More info

Oct $1$ Sold a one$-$year subscription, collecting cash of $$2,000,$ plus sales tax of

$10\%.$ The subscription will begin on October $1.$

Nov $15$ Remitted $($paid$)$ the sales tax to the state of Texas.

Dec $31$ Made the necessary adjustment at year$-$end.