Sandler Company completed the following two transactions. The annual accounting

Question

Sandler 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 ($290,000), payroll deductions for income tax (S31,000), payroll deductions for FICA ($23,000), payroll deductions for United Way ($4,300), employer contributions for FICA (matching) and state and federal unemployment taxes ($2,300). 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 $1,590 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: (i) Prepare the entries required on December 31 to record payroll (ii) Prepare the journal entry for the collection of rent on December 10 (ii) 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 4 Record the wages expense, including payroll deductions Note: Enter debits before credits Date General Journal Debit Credit December 31 Record entry Clear entry View general journal

Explanation / Answer

i) To Record Payroll   Date Accoutn Tittle & Explanation Debit Credit Dec-31 Wages Expense $290,000.00 Withheld Income Tax Payable $31,000.00 FICA Payable $23,000.00 United Way Payable $4,300.00 Cash $231,700.00 Dec-31 Payroll Tax Expense $25,300.00 FICA Payable $23,000.00 State & Federal Unemployment Taxes Payable $2,300.00 ii) Collection of Rent on December 10 Date Accoutn Tittle & Explanation Debit Credit Dec-10 Cash $1,590.00 Unearned Rent Revenue $1,590.00 Dec-31 Unearned Rent Revenue $1,060.00 Rent Revenue $1,060.00 (1590X20/30)-1060 $2,300.00 3. Sanoler company Balancesheet (Partial) At December 31 Current Liabilities Accrued Payroll 83600* Unearned Rent Revenue 530** *Accured Payroll:- (290000-231700+25300) ** Unearned Rent Revenue = $1590*10/30=$530

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