The following information applies to the questions displayed below.] Riverside C

Question

The following information applies to the questions displayed below.] Riverside 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 ($180,000), payroll deductions for Income tax ($18,000), payroll deductions for FICA ($20,000), payroll deductions for United Way ($4,000), employer contributions for FICA (matching), and state and federal unemployment taxes ($2.300). Employees were pald In cash, but these payments and the corresponding payroll deductions and employer taxes have not yet been recorded. b. Collected rent revenue of $4,800 on December 10 for office space that Riverside rented to another was for 30 days from December 11 to January 10 and was credited in full to buslness. The rent collected Unearned Rent Revenue. References CP10-3 Recording and Reporting Current Liabilities LO 10-2] Section Break

Explanation / Answer

Accounts Title Dr Cr 31-Dec Wages expenses $180,000 Withheld Income tax payable $18,000 FICA payable $20,000 United way payable 4000 Cash $138,000 (being wages recorded) 31-Dec Payroll Tax expenses $22,300 FICA payable $20,000 State & Federal unemployment taxes payable 2300 10-Dec Cash $4,800 Unearned Rent revenue $4,800 (being revenue recorded) 31-Dec Unearned Rent revenue (4800/30*20) 3200 Rent revenue 3200 ans 3 Balance Sheet (Parial) Current Liabilities Taxes payable (18000+20000+4000+22300) 64300 Unearned Rent revenue $1,600 If any doubt please comment

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