Question

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 ($68,000), payroll deductions for income tax ($6.800), payroll deductions for FICA ($5,100), payroll deductions for American Cancer Society ($2,550). employer contributions for FICA (matching, and state and federal unemployment taxes ($595). 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 $5.775 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 Deferred Revenue Required: 1. & 2. Prepare the journal entries to record payroll on December 31, the collection of rent on December 10 and adjusting journal entry on December 31 3. Show how any of the abilities related to these items should be reported on the company's balance sheet at December 31. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Prepare the journal entries to record payroll on December 31, the collection of rent on December 10 and 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.)

Answer 1

1)
Date	General Journa	Debit	Credit
Dec.31	Wages expense	$        68,000
	Income tax payable		$          6,800
	FICA Payable		$          5,100
	American cancer society contribution payable		$          2,550
	Cash		$        53,550
2)
Date	General Journa	Debit	Credit
Dec.31	FICA expense	$          5,100
	State and federal unemployment taxes	$              595
	FICA Payable		$          5,100
	State and federal unemployment taxes payable		$              595
3)
Date	General Journa	Debit	Credit
Dec.10	Cash	$          5,775
	Unearned rental income		$          5,775
4)
Date	General Journa	Debit	Credit
Dec.31	Unearned rental income (5775*20/30)	$    3,850.00
	Rental Income		$          3,850

Requirement 3

Lakeview Company
Balance Sheet (partial)
At December 31
Income tax payable	$    6,800
FICA Payable	$ 10,200
State and federal unemployment taxes payable	$ 595
American cancer society contribution payable	$    2,550
Unearned rental income	$    1,925
Total	$ 22,070