ezto.mheducation.com/hm.tpx Bookmarks ESCI 111 Quiz 10 Lakeview Company complete

Question

ezto.mheducation.com/hm.tpx Bookmarks ESCI 111 Quiz 10 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 ($96,000), payroll deductions for income tax ($9,600), payroll deductions for FICA ($7,200), payroll deductions for American Cancer Society ($3,600), employer contributions for FICA (matching), and state and federal unemployment taxes ($720). 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 $6,300 on December 10 for office space that Lakeview rented to another business. The rent collected was for 30 days from December 11 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: () 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 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 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 $6,300. 4 Record the adjusting entry relating to rent. Credit

Explanation / Answer

Date Particulars Debit Credit (i) Prepare the entries required on December 31 to record payroll Dec. 31 Wages Expense $96,000 Withheld income tax payable $9,600 FICA Payable $7,200 American Cancer Society Payable $3,600 Cash $75,600 (Being Wages Expense) Dec. 31 Payroll tax expense $7,920 State and federal Unemployment tax payable $720 FICA payable $7,200 (Being taxes payable) (ii) Prepare the journal entry for the collection of rent on December 10 Dec. 10 Cash $6,300 Unearned Rent Revenue $6,300 (Being Cash received for rent) (iii) Prepare the adjusting journal entry on December 31 Dec. 31 Unearned Rent Revenue $4,200 Rent Revenue $4,200 (Being Rent earned) *($6,300 / 30) x 20 days LAKEVIEW COMPANY Balance Sheet (partial) At December 31 Current Liabilities: Accrued Payroll* $28,320 Unearned Rent Revenue $2,100 *$9600 + $7200 + $3600 + $720 + $7200

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