During 2010, Lakeview Company completed the following two transactions. The annu

Question

During 2010, Lakeview Company completed the following two transactions. The annual accounting period ends December 31. On December 31, 2010, calculated the payroll, which indicates gross earnings for wages ($81,100), payroll deductions for income tax ($8,110), payroll deductions for FICA ($5,960), payroll deductions for American Cancer Society ($1,890), employer contributions for FICA (matching), state unemployment taxes ($509), and federal unemployment taxes ($105). Employees were paid in cash, but these payments and the corresponding payroll deductions and employer taxes have not yet been recorded. Collected rent revenue of $3,030 on December 10, 2010, for office space that Lakeview rented to another business. The rent collected was for 30 days from December 11, 2010, to January 10, 2011, and was credited in full to Unearned Rent Revenue. how how any liabilities related to these items should be reported on the company's balance sheet at December 31, 2010. (Omit the "$" sign in your response.)

Partial Balance Sheet at December 31, 2010 Current Liabilities:

accrued payroll ?

Explanation / Answer

Recording and Reporting Current Liabilities Req. 1 dr Wage Expense (+E, -SE) 80,000 cr Withheld Income Tax Payable (+L) cr FICA Payable (+L) 6,000 cr American Cancer Society Payable (+L) cr Cash (-A) 64,000 dr Payroll Tax Expense (+E, -SE) 6,600 cr FICA Payable (+L) 6,000 cr State Unemployment Tax Payable (+L) cr Federal Unemployment Tax Payable (+L)

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