Chapter 11, Problem E11.16E

Recording and reporting current liabilities

Learning Objective 1

Dec. 31 Subscription Revenue $80

Watson Publishing completed the following transactions during 2018:

Oct. 1	Sold a six-month subscription (starting on November 1), collecting cash of $240, plus sales tax of 8%.
Nov. 15	Remitted (paid) the sales tax to the state of Tennessee.
Dec. 31	Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year.

Journalize the transactions (explanations are not required). Round to the nearest dollar.