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Lakeview Company completed the following two transactions. The annual accounting period ends December 31. On December 31, calculated the payroll, which indicates gross earnings for
Lakeview Company completed the following two transactions. The annual accounting period ends December 31.
- On December 31, calculated the payroll, which indicates gross earnings for wages ($155,000), payroll deductions for income tax ($15,500), payroll deductions for CPP ($12,500) and EI ($8,500), payroll deductions for Canadian Cancer Society ($10,500), and employer contributions for CPP (matching) and EI ($11,900). 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.
- Collected rent revenue of $10,500 on December 10 for office space that Lakeview rented to another business. The rent collected was for thirty days from December 11 to January 10 and was credited in full to Deferred Revenue.
Required: 1. Prepare the journal entries to record payroll on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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