Question

lake view company completed the following two transactions

CH 10 5. value 2.00 points Lakeview Company compleled dhe following two transactions. The annual accounting period ends December 31 a On December 31, calculated the payroll which indicates gross eamings for wages ($72,000), payroll deductions for income tax (57,200), 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 (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: 1& 2.Complete the required journal entries for the above transactions as shown below Prepare the entries required on December 31 to record payroll () Prepare the journal entry for the collection of rent on December 10 ) Prepare the adjusting jounal entry on December 31 (Do not round interrsedisle calculetions. If no entry is required for a transactionlevent, select "No Journal Entry Regrired" in ihe first sccount field.) View transaction list Journal entry worksheet 2 3 Record the payroll tax expense. Note: Enter debits before credits Date General Jourmal Debit Credit December 31Payroll Tax Experty Racond entry Clear entry View general jourmal Show how any Sabties reiated to these dems shouid be reported on the company's balance sheet al 3 December 31 Type here to search LO

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Format and Naming convention is not available, can be slightly different: Solution: 1&2) Journal entries Debit Account title and explaination Credit Date Wages expense Withheld income tax Payable FICA payable American Cancer Society Payable (or Charitable contribution Payable) Cash 1) Dec.31 72,000 7,200 $ 5,400 $ 2,700 56,700 (To record the payroll expense) Payroll Tax Expense FICA payable State and Federal Unemployment Tax Payable (To record the payroll tax expense) Dec.31 5,940 5,400 540 Cash $ ii) 5,850 Unearned Rent Revenue (To record the collection of advance rent) $ 5,850 Unearned Rent Revenue (5850/30) 20 3,900 Rent Revenue 3,900 (To record the adjusting entry related to rent) Balance Sheet 3) Current Liabilities: Withheld Income Taxes Payable FICA Payable American Cancer Society Payable (or Charitable contribution Paya $ State and Federal Unemployment Tax Payable Unearned Rent Revenue 7,200 (5400*2) 10,800 2,700 540 (5850-3900) 1,950 Total Current Liabilities $ 23,190 to