20100 points Sandler Company completed the following two transactions. The annua

Question

20100 points 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 ($440,000), payroll deductions for income tax ($46,000), payroll deductions for FICA ($38,000), payroll deductions for United Way ($5,800), employer contributions for FICA (matching) and state and federal unemployment taxes ($3,800). 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 $2,040 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 (1) Prepare the entries required on December 31 to record payroll. (n) 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

Explanation / Answer

Date General Journal Debit Credit Dec. 31 Wages expense 440000 Income taxes withheld 46000 FICA payable 38000 United Way payable 5800 Cash 350200 (To record wages expense and payroll deductions) Dec. 31 Payroll tax expense 41800 FICA payable 38000 FUTA & SUTA payable 3800 (To record payroll tax expense) Dec. 10 Cash 2040 Unearned revenue 2040 (To record rent collection in advance) Dec. 31 Unearned revenue 1360 Rent revenue ($2040 x 20/30) 1360 (To record rent revenue) SANDLER COMPANY Balance Sheet (partial) At December 31 Liabilities Current liabilities Income taxes withheld 46000 FICA payable 76000 United Way payable 5800 FUTA & SUTA payable 3800 Unearned revenue 680 132280

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