Ozark Publishing Company completed the following transactions during 2014: Nov 1 Sold a six-month subscription, collecting cash

Question:

Ozark Publishing Company completed the following transactions during 2014:

Nov 1 Sold a six-month subscription, collecting cash of $180, plus sales tax of 5%.

Dec 15 Remitted the sales tax to the CRA.

31 Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year.

Requirements

1. Journalize these transactions. Explanations are not required.

2. What amounts would Ozark Publishing Company report on the balance sheet at December 31, 2014?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...