Riverside Company completed the following two transactions. The annual accounting period ends December 31. a. On December

Question:

Riverside 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 ($ 130,000), payroll deductions for income tax ($ 13,000), payroll deductions for FICA ($ 10,000), payroll deductions for United Way ($ 2,000), employer contributions for FICA (matching), and state and federal unemployment taxes ($ 1,300). Employees were paid in cash, but these payments and the corresponding payroll deductions and employer taxes have not yet been recorded.
b. Collected rent revenue of $ 3,600 on December 10 for office space that Riverside 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. Give the journal entries to record payroll on December 31.
2. Give (a) the journal entry for the collection of rent on December 10 and (b) the adjusting journal entry on December 31.
3. Show how any liabilities related to these items should be reported on the company’s at December 31.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...