TransWorld Publishing completed the following transactions for o

TransWorld Publishing completed the following transactions for one subscriber during 2010:
Oct 1 Sold a one-year subscription, collecting cash of $1,400, plus sales tax of 8%.
Nov 15 Remitted (paid) the sales tax to the state of Massachusetts. Made the necessary adjustment Dec 31 at year-end.

Requirement
1. Journalize these transactions (explanations not required). Then report any liability on the company’s balance sheet at December 31, 2010.

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...