Stone Publishing completed the following transactions for one subscriber during 2014:
Oct 1 Sold a one-year subscription, collecting cash of $2,200, plus sales tax of 7%.
Nov 15 Remitted (paid) the sales tax to the state of Massachusetts.
Dec 31 Made the necessary adjustment at year-end.
1. Journalize these transactions (explanations not required). Then report any liability on the company’s balance sheet at December 31, 2014.