Question

lake view company completed the following two transactions

CH10 5. 200 points Lakeview Company completed the following two transactions. The annual accounting period ends December 31 a on December 31, calculated the payroll which indicates gross eamings for wages (572000), payroll deductions for income tax (S7,200), payroll deductions for FICA (55.400), payroll deductions for American Cancer Society ($2.700), employer contributions for FICA (matching), and state and federal unemployment taxes (5540). 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 12 to January 10 and was credited in full to Uneamed Rent Revenue Required: 18 2.Complete the required journal entries for the above transactions as shown below Prepare the entries required on December 31 to record payroll c) Prepare the journal entry for the collection of rent on December 10 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 bred.) View transaction list Journal entry worksheet < 0 Record the payroll tax expense. Not: E rdebit bore credits December 31 Pay General Journal Tax Expert Debit Credit Cleary Show howar t ies related to these shod be reported on the company's balance sheet an Type here to search

Answer 1

a)
Date	General Journal	Debit	Credit
31-Dec	Wages expense	$ 72,000.00
	Withheld income tax payable		$   7,200.00
	FICA payable		$   5,400.00
	American cancer society payable		$   2,700.00
	Cash		$ 56,700.00
31-Dec	Payroll tax expense	$   5,940.00
	State  and Federal unemployment tax payable		$      540.00
	FICA payable		$   5,400.00
b)
31-Dec	Cash	$   5,850.00
	Rent Revenue		$   5,850.00
	Rent Revenue (5850/30 days x 10 days)	$   1,950.00
	Unearned Rent Revenue		$   1,950.00
c)	Balance sheet at December 31, 20xx
	Current Liabilities
	Withheld income tax payable	$   7,200.00
	FICA payable	$ 10,800.00
	American cancer society payable	$   2,700.00
	State  and Federal unemployment tax payable	$      540.00
	Unearned Rent Revenue	$   1,950.00
	Total	$ 23,190.00