PB10-3 Recording and Reporting Current Liabilities LO 10-2] Sandler Company comp
ID: 2535250 • Letter: P
Question
PB10-3 Recording and Reporting Current Liabilities LO 10-2] Sandler Company completed the following two transactions. The annual accounting period ends December 31 a. On December 31, calculated the payroll, which indicates gross earmings for wages ($300,000), payroll deductions for income tax (532,000), payroll deductions for FICA ($24,000), payroll deductions for United Way ($4,400), employer contributions for FICA (matching) and state and federal unemployment taxes ($2,400). 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 $1,620 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 Unearmed 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 (i) 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 View journal entry worksheet X ebit 300,000 32,000 24,000 4,400 1 Record the wages expense, including payroll deductions. 2 Record the payroll tax expense. 3 Record the collection of 30 days' rent in advance amounting to $1,620. 4 Record the adjusting entry relating to rent.Explanation / Answer
1 & 2 : In the books of Sandler Company:
3. Sandler Company
Balance Sheet ( Partial)
December 31
Transaction / Adjustment Date Account Titles Debit Credit $ $ a. December 31 Wages Expense 300,000 Income Tax Payable 32,000 FICA payable 24,000 United Way payable 4,400 Cash 239,600 To record the wages expense, including payroll deductions December 31 Payroll Tax Expense State Unemployment Tax Payable ??? Federal Unemployment Tax Payable ??? FICA Payable 24,000 b. December 10 Cash 1,620 Unearned Revenue 1,620 c. December 31 Unearned Revenue ( $ 1,620 / 30 x 21days) 1,134 Rent Revenue 1,134Related Questions
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