15.00 points PB10-3 Recording and Reporting Current Liabilities [LO 10-2] Sandle

Question

15.00 points PB10-3 Recording and Reporting Current Liabilities [LO 10-2] Sandler Company completed the following two transactions. The annual accounting period ends December 31 a. On December 31, calculated the payroll, which indicates gross eanings for wages ($260,000), payroll deductions for income tax ($28,000), payroll deductions for FICA ($20,000), payroll deductions for United Way ($4,000), employer contributions for FICA (matching) and state and federal unemployment taxes ($2,000). 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 $1,500 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 Uneaned Revenue Required 1. & 2.Complete the required journal entries for the above transactions as shown below: (i) Prepare the entries required on December 31 to record payroll (i) Prepare the journal entry for the collection of rent on December 10 (li) 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.) View transaction list Journal entry worksheet 2 3 4 Record the wages expense, including payroll deductions Note: Enter debits before credits Date General Journal Debit Credit December 31 Record entry View general journal Clear entry 3. Show how any liabilities related to these items should be reported on the company's balance sheet at December 31. (Do not round intermediate calculations.) SANDLER COMPAN Balance Sheet (partial) At December 31

Explanation / Answer

31-Dec Salaries and wages expense 260000               Income tax payable 28000               FICA taxes payable 20000               United way payable 4000               Cash 208000 31-Dec Payroll taxes 22000               FICA taxes payable 20000               Federal unemployement taxes payable 2000 10-Dec Cash 1500            Unearned revenue 1500 31-Dec Unearned revenue 1000               Rent revenue 1000 Balance sheet Liabilities Income tax payable 28000 FICA taxes payable 40000 United way payable 4000 Federal unemployement taxes payable 2000 Unearned revenue 500 Total 74500

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