H1O HW Questions 8-9 (of 9) CP1O-3 Recording and Reporting Current Liabilities L
ID: 2574581 • Letter: H
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H1O HW Questions 8-9 (of 9) CP1O-3 Recording and Reporting Current Liabilities LO 10-2) IThe following information applies to the questions displayed below] Riverside Company completed the following two transactions. The annual accounting period ends December 31. On December 31, calculated the payroll, which indicates gross earnings for wages ($200,000), payroll deductions for income tax ($20,000), payroll deductions for FICA ($24,000), payroll deductions for United Way ($4,800), employer contributions for FICA (matching), and state and federal unemployment taxes ($2.700). Employees were pald in cash, but these payments and the corresponding payroll and employer taxes have not yet been recorded. a. b. Collected rent revenue of $5.280 on December 10 for office space that Riverside 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. References Section Break CP10-3 Recording and Reporting Current LiabiltiesLo 10-2)Explanation / Answer
general journal
date
explanation
debit
credit
31-Dec
wages expense
200000
with held income tax payable
20000
fica payable
24000
united way payable
4800
cash
151200
31-Dec
payroll tax expense
26700
fica payable
24000
state and federal unemployment taxes payable
2700
10-Dec
cash
5280
unearned rent revenue
5280
31-Dec
unearned rent revenue
3520
rent revenue
3520
balance sheet
current liabilities
unearned rent revenue
1760
accrue payroll taxes
75500
general journal
date
explanation
debit
credit
31-Dec
wages expense
200000
with held income tax payable
20000
fica payable
24000
united way payable
4800
cash
151200
31-Dec
payroll tax expense
26700
fica payable
24000
state and federal unemployment taxes payable
2700
10-Dec
cash
5280
unearned rent revenue
5280
31-Dec
unearned rent revenue
3520
rent revenue
3520
balance sheet
current liabilities
unearned rent revenue
1760
accrue payroll taxes
75500
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