Question

PB10-3 Recording and Reporting Current Liabilities (LO 10-2) 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 ($390,000), payroll deductions for income tax ($41,000), payroll deductions for FICA (533,000), payroll deductions for United Way ($5,300), employer contributions for FICA (matching), and state and federal unemployment taxes ($3,300). 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 $1,890 on December 10 for office space that Sandler 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 entries required on December 31 to record payroll, the collection of rent on December 10 and adjusting journal entry on December 31 3. Show how any liabilities 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. Req 1 and 2 Show how any liabilities related to these items should be reported on the company's balance sheet at December 31. (Do not round intermediate calculations.) SANDLER COMPANY Balance Sheet (partial) < Req 1 and 2 Req3 >

Answer 1

To Cagle pagable Answer | 182) Journal entries patel particulars LF Debit eredit Decol salary & wages Ale Dy $390,000 To Income tage corttheld $ 41,000 TO FICA payable $33.000 To united way deduction $ 5300 $310700 Dec-31 payroll expenses ale DX $36,300 TO FICA payable $33.000 $3,300 TO SUTA E FUTA payable Decid cash Ale 1 or $1,890 To unearued Rent Revencie $ 1,890 Dec31 | unearned rent Revenue Alc To Rent Revende $1890x240 $1,260 3) company Balance sheet as on December 31. Curgent Liabilities J Amount outstanding Income tax payable $41,000 outstanding FICA Taxes ($33.000* 23,000 $66,000 Outstanding unemployment taxes $3.300 Revenue (Advance) 1,890-$1260) $6.30 Outstanding charitable couterbelion | $5300 Tolal current Liabilities Ś 116,230