1. 133 points value: Lakeview Company completed the following two transactions.

Question

1. 133 points value: 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 ($80,000), payroll deductions for income tax ($8,000), payroll deductions for FICA ($6,000), payroll deductions for Cancer Society ($3,000), employer contributions for FICA (matching), and state and federal unemployment taxes ($600). 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 $6,000 on December 10 for office space that Lakeview rented to another business. The rent collected was for 30 days from December 12 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 (ii) 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 list Journal entry worksheet

Explanation / Answer

Date General Journal Debit Credit 31-Dec Wages Payable 80000 Withheld income tax payable 8000 FICA payable 6000 American cancer society payable 3000 Cash 63000 31-Dec Payroll tax expense 6600 FICA payable 6000 State & Federal unemployment tax payable 600 Cash 6000 Unearned rent revenue 6000 Unearned rent revenue 4000 Rent revenue 4000 6000*20/30 Partial Balance Sheet at December 31 Current Liabilities: Accrued payroll 8000+6000+3000+6600 23600 Unearned rent revenue (6000-4000) 2000

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