Publishing completed the following transactions during 2018 Oct 1: Sold a six-month subscription (starting on November 1), collecting cash of $540, plus sales tax of 8%. (Prepare a single compound entry for this transaction.) Date Accounts and Explanation Debit Credit Oct. 1 Nov. 15: Remitted (paid) the sales tax to the state of Tennessee. Date Accounts and Explanation Debit Credit Nov. 15 Dec. 31: Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year. Date Accounts and Explanation Debit Credit Dec. 31

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Publishing completed the following transactions during
2018
Oct 1: Sold a six-month subscription (starting on November 1),
collecting cash of $540, plus sales tax of 8%. (Prepare a single
compound entry for this transaction.)
Date
Accounts and Explanation
Debit
Credit
Oct.
1
Nov. 15: Remitted (paid) the sales tax to the state of Tennessee.
Date
Accounts and Explanation
Debit
Credit
Nov.
15
Dec. 31: Made the necessary adjustment at year-end to record the
amount of subscription revenue earned during the year.
Date
Accounts and Explanation
Debit
Credit
Dec.
31
Transcribed Image Text:Publishing completed the following transactions during 2018 Oct 1: Sold a six-month subscription (starting on November 1), collecting cash of $540, plus sales tax of 8%. (Prepare a single compound entry for this transaction.) Date Accounts and Explanation Debit Credit Oct. 1 Nov. 15: Remitted (paid) the sales tax to the state of Tennessee. Date Accounts and Explanation Debit Credit Nov. 15 Dec. 31: Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year. Date Accounts and Explanation Debit Credit Dec. 31
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