Ocean Blue Publishing completed the following transactions for one subscriber during 2021: ✪ (Click the icon to view the transactions.) Requirement Journalize these transactions (explanations not required). Then report any liability on the company's balance sheet at December 31, 2021. (Recor 1. Start by journalizing the October 1st transaction. Recall Ocean Blue Publishing sold a one-year subscription, collecting cash of $2,300, plus sales tax of 10 Journal Entry Date Oct 1 Accounts Debit Credit

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ocean Blue Publishing completed the following transactions for one subscriber during 2021:
i (Click the icon to view the transactions.)
Requirement
1. Journalize these transactions (explanations not required). Then report any liability on the company's balance sheet at December 31, 2021. (Record debits first, then credits. Exclude explanations from journal entries.)
Start by journalizing the October 1st transaction. Recall Ocean Blue Publishing sold a one-year subscription, collecting cash of $2,300, plus sales tax of 10%.
Journal Entry
Accounts
Date
Oct
Date
Nov
1
Next, journalize the November 15th transaction. Recall Ocean Blue Publishing remitted (paid) the sales tax to the state of North Carolina.
Journal Entry
Accounts
Date
Dec
15
Account
31
Debit
Make the necessary adjustment at year-end, December 31, to record the amount of subscription revenue earned during the year.
Journal Entry
Accounts
Debit
Amount
Credit
Debit
Credit
Credit
More info
Oct 1
Nov 15
Dec 31
Report the liability on the company's balance sheet at December 31, 2021. (If an input field is not used in the table leave the field empty: do not select a label or enter a zero.)
Balance Sheet (partial)
(**)
Sold a one-year subscription, collecting cash of $2,300, plus sales tax
of 10%. The subscription will begin on October 1.
Remitted (paid) the sales tax to the state of North Carolina.
Made the necessary adjustment at year-end.
Print
Done
X
Transcribed Image Text:Ocean Blue Publishing completed the following transactions for one subscriber during 2021: i (Click the icon to view the transactions.) Requirement 1. Journalize these transactions (explanations not required). Then report any liability on the company's balance sheet at December 31, 2021. (Record debits first, then credits. Exclude explanations from journal entries.) Start by journalizing the October 1st transaction. Recall Ocean Blue Publishing sold a one-year subscription, collecting cash of $2,300, plus sales tax of 10%. Journal Entry Accounts Date Oct Date Nov 1 Next, journalize the November 15th transaction. Recall Ocean Blue Publishing remitted (paid) the sales tax to the state of North Carolina. Journal Entry Accounts Date Dec 15 Account 31 Debit Make the necessary adjustment at year-end, December 31, to record the amount of subscription revenue earned during the year. Journal Entry Accounts Debit Amount Credit Debit Credit Credit More info Oct 1 Nov 15 Dec 31 Report the liability on the company's balance sheet at December 31, 2021. (If an input field is not used in the table leave the field empty: do not select a label or enter a zero.) Balance Sheet (partial) (**) Sold a one-year subscription, collecting cash of $2,300, plus sales tax of 10%. The subscription will begin on October 1. Remitted (paid) the sales tax to the state of North Carolina. Made the necessary adjustment at year-end. Print Done X
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