In addition, please: Show how any liabilities related to these items should be r
ID: 2584286 • Letter: I
Question
In addition, please:
Show how any liabilities related to these items should be reported on the company’s balance sheet at December 31.
Show how any liabilities related to these items should be reported on the company’s balance sheet at December 31.
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 ($108,000), payroll deductions for income tax ($10,800), payroll deductions for FICA ($8,100), payroll deductions for American Cancer Society ($4,050), employer contributions for FICA (matching), and state and federal unemployment taxes ($810). 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 $6,525 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 (ii) Prepare the journal entry for the collection of rent on December 10 (IlI) Prepare the adjusting journal entry on December 31 (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction listView journal entry worksheet X ebit C 1 Record the wages expense, including payroll deductions. 2 Record the payroll tax expense. 3Record the collection of 30 days' rent in advance amounting to $6,525. Record the adjusting entry relating to rent.Explanation / Answer
Account Titles and Explanation Debit Credit 1 Wages expense 108000 Income taxes withheld payable 10800 FICA payable 8100 American Cancer Society payable 4050 Cash 85050 (To record wages expense) 2 Payroll tax expense 8910 FICA payable 8100 SUTA and FUTA payable 810 (To record payroll tax expense) 3 Cash 6525 Unearned Rent Revenue 6525 (To record rent collected in advance) 4 Unearned Rent Revenue 4350 Rent revenue ($6525 x 20 / 30) 4350 (To record rent revenue) Lakeview Company Partial Balance Sheet December 31 Current Liabilities: Income taxes withheld payable 10800 FICA Payable 16200 American Cancer Society payable 4050 SUTA and FUTA payable 810 Unearned rent revenue 2175 34035
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