Question

Assume

the National Post

completed the following transactions for one subscriber during

2020​:

Oct. 1	Sold a​ six-month subscription, collecting cash of $100 plus PST of 8 percent and GST of 5 percent.
Nov. 15	Remitted​ (paid) the PST to the Province of Manitoba and the GST to the Receiver General.
Dec. 31	Made the necessary adjustment at year end to record the amount of subscription revenue earned during the year.

Required

1.	Using the account title Unearned Subscription​ Revenue, journalize the transactions above.
2.	Post the entries to the Unearned Subscription Revenue​ T-account. How much does the National Post owe the subscriber at December​ 31, 2020​?
3.	How would the entries in Requirement 1 be different if the National Post were in a different province that uses a 12 percent HST​ rate? Record the entries.

Requirement 1. Using the account title Unearned Subscription​ Revenue, journalize the transactions above.

Oct. 1. Sold a​ six-month subscription, collecting cash of

$100

plus PST of

8

percent and 5 percent of GST. ​(Record debits​ first, then credits. Exclude explanations from journal entries. Round your answers to the nearest​ cent.)

Journal Entry
Date		Accounts	Debit	Credit
Oct.

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Answer 1