Travis Publishing Company completed the following transactions during 2012:
Sep 1 Sold 40 six-month subscriptions, collecting cash of $1,500, plus sales tax of 5%.
Oct15 Remitted the sales tax to the state of Maine.
Dec 31 Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year.
1. Journalize these transactions. Explanations are not required.
2. What amounts would Travis Publishing Company report on the balance sheet at December 31, 2012?