Trans-World Publishing Company completed the following transactions during 2014: Aug 1 Sold a six-month subscription, collecting cash

Question:

Trans-World Publishing Company completed the following transactions during 2014:

Aug 1 Sold a six-month subscription, collecting cash of $3,000, plus sales tax of 4%.

Dec 15 Remitted the sales tax to the provincial tax authority.

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 Trans-World 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...