During 2013, Lakeview Company completed the following two transactions. The annu

Question

During 2013, Lakeview Company completed the following two transactions. The annual accounting period ends December 31. a. On December 31, 2013, calculated the payroll, which indicates gross earnings for wages ($60,000), payroll deductions for income tax ($6,000), payroll deductions for FICA ($4,500), payroll deductions for American Cancer Society ($2,250), employer contributions for FICA (matching), state unemployment taxes ($375), and federal unemployment taxes ($75). 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 $5,625 on December 10, 2013, for office space that Lakeview rented to another business. The rent collected was for 30 days from December 12, 2013, to January 10, 2014, and was credited in full to Unearned Revenue. Required: 1., 2-a. & 2-b. Complete the required journal entries to record payroll on December 31, 2013, collection of rent on December 10, 2013, and adjusting journal entry on December 31, 2013. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

a Journal Entries Date Account Title Dr $ Cr $ Dec 31.2013. Wages Expenses            60,000 Income Tax Payable              6,000 FICA Tax Payable              4,500 Contribution to American Cancer Society Payable              2,250 Wages Payable           47,250 (recording wage expense) Dec 31.2013. Wages Payable            47,250 Cash           47,250 (recording Wages payment) Dec 31.2013. FICA Tax Payable              4,500 SUTA Payable                 375 FUTA Payable                    75 Payroll Tax Expenses              4,950 (recording employer payroll tax expenses) b Date Account Title Dr $ Cr $ Dec 10.2013 Cash              5,625 Unearned Revenue              5,625 (recording receipt of rent) Dec 31.2013. Revenue -Rental              3,750 Unearned Revenue              3,750 (recognizing proportional revenue for 20 days in Dec 2013.)

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