Wortham Publishing completed the following transactions for one subscriber during 2014: Oct 1 Sold a one-year subscription,

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Wortham Publishing completed the following transactions for one subscriber during 2014:
Oct 1 Sold a one-year subscription, collecting cash of $1,800, plus sales tax of 9%.
Nov 15 Remitted (paid) the sales tax to the state of Massachusetts.
Dec 31 Made the necessary adjustment at year-end.

Requirement
1. Journalize these transactions (explanations not required). Then report any liability on the company’s 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...
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Financial Accounting

ISBN: 978-0133427530

10th edition

Authors: Walter Harrison, Charles Horngren, William Thomas

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