Lakeview Company completed the following two transactions. The annual accounting

Question

Lakeview Company completed the following two transactions. The annual accounting period ends December 31 a On December 31, calculated the payroll, which indicates gross earnings for wages ($84,000), paýroll deductions for income tax ($8,400), payroll deductions for FICA ($6,300), payroll deductions for American Cancer Society ($3,150), employer contributions for FICA (matching), and state and federal unemployment taxes ($735). Employees were paid in cash, but payments for the corresponding payroll deductions have not yet been made and employer taxes have not yet been recorded b. Collected rent revenue of $6,075 on December 10 for office space that Lakeview rented to another business. The rent collected was for 30 days from December 11 to January 10 and was credited in full to Deferred Revenue. Required: 1. & 2. Prepare the journal entries to record payroll on December 31, the collection of rent on December 10 and adjusting journal entry 3. Show how any of the liabilities related to these items should be reported on the company's balance sheet at December 31 on December 31 Complete this question by entering your answers in the tabs below Rea 1 and 2 Req 3 Prepare the journal entries to record payroll on December 31, the collection of rent on December 10 and adjusting journal entry on December 31. (Do not round intermediate calculations. If no entry is required for a transaction/event, select

Explanation / Answer

Journal entries: Date Accounts title and explanantion Debit $ Credit $ 31-Dec Salaries and wages expenses account Dr. 84000      Income taxx payable Account 8400      FICA Tax Payabble Account 6300      American Cancer society Account 3150      Cash account 66150 31-Dec Payroll Tax expense Acount Dr. 7035       FICA tax payable 6300       Federal and State Unemployment tax payable 735 10-Dec Cash account Dr. 6075      Unearned rent revenue Account 6075 31-Dec Unearned rent revenue Account Dr. 4050      Rent revenue Account (6075/30*20) 4050 Balance Sheet (Partial) Liabilities: Income tax payable 8400 FICA tax payable 12600 Federal and State unemployment tax payable 735 American cancer society Dues 3150 Unearned rent revenue 2025 Total 26910

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