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 (S76,000), payroll deductions for income tax (S7,600), payroll deductions for FICA ($5,700), payroll deductions for American Cancer Society ($2,850), employer contributions for FICA (matching), and state and federal unemployment taxes (S570). 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 $5,925 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 Unearned Rent 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 jounal entry for the collection of rent on December 10 (ili) Prepare the adjusting journal entry on December 31 (Do not round intemediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 December 31 Salaries and Wages Expense 76.000 Withheld Income Taxes Payable Charitable Contributions Payable FICA Payable 7.600 2.850 5,700 2 December 31 Payroll Tax Expense State and Federal Unemployment Taxes Payable 3 December 10 Cash 5,925 Uneamed Revenue 5,925 4 December 31 Unearned Revenue Rent Revenue

Explanation / Answer

1 Salaries and wages expense 76000           Withheld income taxes payable 7600            Charitable contributions payable 2850            FICA payable 5700            Cash 59850 2 Payroll tax expense 6270            FICA payable 5700             State and federal unemployment taxes payable 570 3 Cash 5925         Unearned rent revenue 5925 4 Unearned rent revenue 3950 =5925/30*20         Rent revenue 3950

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