Question
need help on journal entries and the balance sheet
me-alamo.eduXChapter 10 Quiz ? eztomheducation.com/hm.tpx PB10-3 Recording and Reporting Current Llabilities [LO 10-2] Sandler Company completed the fallowing two transactions. The annual accounting period ends December 31. a. On December 31, calculated the payroll, which indicates gross eamings for wages ($340,000), payroll deductions for income tax ($36,000), payroll deductions for FICA ($28,000), payroll deductions for United Way ($4,800), employer contributions for FICA (matching) and state and federal unemployment taxes ($2,800) Employees were paid in cash, but payments for the corresponding payroll deductions have not been made and employer taxes have not yet been recorded b Collected rent revenue of $1,740 on December 10 for office space that Sandler rented to another business. The rent collected was for 30 days from December 11 to January 10 and was credited in full to Uneamed Revenue Required 1. & 2. Complete the required joumal entries for the above transactions as shown below () Prepare the entries required on December 31 to record payroll (n) Prepare the journal entry for the collection of rent on December 10 ) Prepare the adjusting journal entry on December 31 (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) iew transaction list Journal entry worksheet Record the wages expense, including payroll deductions
Explanation / Answer
Solution:
1 & 2) Completing the Required Journal Entries for the Above Transactions as shown below:
1. Record the wages expense, including payroll deductions
2. Record the payroll tax expense:
3. Record the collection of 30 days rent in advance amounting to $1,740.
4. Record the adjusting entry relating to rent
Showing how any Liabilities related to these Items Should be Reported on the Company's Balance Sheet at December 31:
Sandler Company
Balance Sheet (Partial)
At December 31
Date General Journal Debit Credit December 31 Salaries and wages
($340,000 + $28,000 + $2,800) $370,800 With held Income Tax Payable $36,000 With held Income FICA Payable $28,000 With held united Way Deduction $4,800 FICA Payable (Matching) $28,000 State and Federal Unemployment Tax Payable $2,800 Cash $271,200
