Sandler Company completed the following two transactions. The annual accounting

Question

Sandler Company completed the following two transactions. The annual accounting period ends a. On December 31, calculated the payroll, which indicates gross earnings for wages ($410,000), payroll deductions for income tax ($43,000), payroll deductions for FICA ($35,000), payroll deductions for United Way ($5,500), employer contributions for FICA (matching) and state and federal unemployment taxes ($3,500). 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 $1,950 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 Unearned Revenue Required 1. & 2. Complete the required journal entries for the above transactions as shown below: () Prepare the entries required on December 31 to record payroll. (i) Prepare the journal entry for the collection of rent on December 10. (ili) 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.) Journal entry worksheet Record the wages expense, including payroll deductions. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Salaries and Wages Expense held Income Taxes Payable ICA Payable Record entry Clear entry View generaljournal

Explanation / Answer

1 & 2 : i.

In the books of Sandler Company:

ii. & iii.

3. Sandler Company

Balance Sheet ( Partial)

December 31

Date Account Titles Debit Credit $ $ December 31 Wages Expense 410,000 Withheld Income Tax Payable 43,000 FICA Payable 35,000 United Way Payable 5,500 Cash 326,500 December 31 Payroll Tax Expense 38,500 State and Federal Unemployment Tax Payable 3,500 FICA Payable 35,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.