Assume the National Post completed the following transactions for one subscriber during 2020:

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.

Transcribed Image Text:

Oct. 1 Sold a six-month subscription, collecting cash of $100 plus PST of 8 percent and GST of 5 percent. Nov. 15 Dec. 31 Remitted (paid) the PST to the province of Manitoba and the GST to the Receiver General. Remember: Write two cheques. Made the necessary adjustment at year end to record the amount of subscription revenue earned during the year.