Question 1 (of 5) 1.00 points PB10-3 Recording and Reporting Current Liabilities

Question

Question 1 (of 5) 1.00 points 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 earnings for wages ($420,000) deductions for income tax ($44,000), payroll deductions for FICA United Way ($5,600), employer contributions for FICA (matching) and state and federal unemployment $36,000), payroll deductions for taxes ($3.600). 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 $1,980 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 Required: 1. &2. Complete the required journal entries for the above transactions as shown below () Prepare the entries required on December 3 1 to record payrol. ()Prepare the journal entry for the collection of rent on December 10 (ili) 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 Journal entry worksheet Record the wages expense, including payroll deductions. FI F2 o FA FS 8

Explanation / Answer

31-Dec Wages expense 420000                Fica taxes payable 36000                Union way payable 5600                Federal income tax payable 44000                Cash 334400 31-Dec Payroll expense 39600                Fica taxes payable 36000                State and federal unempoyement payable 3600 11-Dec Cash 1980           Unearned revenue 1980 31-Dec Unearned revenue 1320 (1980*20/30)               Rent reveue 1320 Balance sheet Current liabilities Fica taxes payable 72000 Union way payable 5600 state and federal unemployement taxes payable 3600 Federal income tax payable 44000 Unearned revenue 660 125860

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