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.

On December 31, calculated the payroll, which indicates gross earnings for wages ($280,000), payroll deductions for income tax ($30,000), payroll deductions for FICA ($22,000), payroll deductions for United Way ($4,200), employer contributions for FICA (matching) and state and federal unemployment taxes ($2,200). Employees were paid in cash, but payments for the corresponding payroll deductions have not been made and employer taxes have not yet been recorded.

Collected rent revenue of $1,560 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.

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.
(iii) 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.)

Show how any liabilities related to these items should be reported on the company’s balance sheet at December 31. (Do not round intermediate calculations.)

Balance Sheet

Sandler Company completed the following two transactions. The annual accounting period ends December 31.

Explanation / Answer

31-Dec Salaries and wages expense 280000               Income tax payable 30000               FICA taxes payable 22000               United way payable 4200               Cash 223800 31-Dec Payroll taxes 22000               FICA taxes payable 22000               Federal unemployement taxes payable 2200 10-Dec Cash 1560            Unearned revenue 1560 31-Dec Unearned revenue 1040               Rent revenue 1040 Balance sheet Liabilities Income tax payable 30000 FICA taxes payable 44000 United way payable 4200 Federal unemployement taxes payable 2200 Unearned revenue 520 Total 80920

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