aestion 1 1. value 0.00 poinits Lakeview Company completed the following two tra

Question

aestion 1 1. value 0.00 poinits Lakeview Company completed the following two transactions. The annual accounting period ends December 31 a. On December 31, calculated the payroll, which indicates gross eanings for wages ($72.000), payroll deductions for income tax ($7.200), payroll deductions for FICA ($5,400), payroll deductions for American Cancer Society ($2,700), employer contributions for FICA (matching), and state and federal unemployment taxes ($540) 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 $5,850 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 0) Prepare the entries required on December 31 to record payroll. (i) Prepare the journal entry for the collection of rent on December 10 (ill) 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.) 1 Record the wages expense, including payroll deductions. Record the payroll tax expense. Record the collection of 30 days' rent in advance 2 3 amounting to $5,850. Record the adjusting entry relating to rent. 4 Credit

Explanation / Answer

Lakeview Company General Journal Requirement 1 & 2) Particular Amount (Dr Amount(Cr) Wage Expense $    72,000.00    To Withheld income tax payable $    7,200.00     To FICA $    5,400.00    To American Cancer Society $    2,700.00    To Cash $ 56,700.00 (Being amount of Wage Expense) Payroll tax expense $      8,280.00    To State Unemployment tax payable $        540.00    To Fedderal Unemployment Tax Payable $        540.00    To FICA Payable $    7,200.00 (Being amount of Payroll Expenses) Particular Amount (Dr Amount(Cr) Cash   $      5,850.00      Unearned Rent Revenue $    5,850.00 (Being aount of advance rent received) Unearned Rent Revenue=($5850*20/30) $      3,900.00    To Rent Revenue $    3,900.00 (Being amount of unearned rent revenue has been unearned) Requirement 3) Lakeview Company Partial Balance Sheet Current Liabilities Accrued Payroll=($7200+$5400+$2700+$540+$540+$7200) $    23,580.00 Unearned Rent Revenue($5850-$3900) $      1,950.00

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.