Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

  1. 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.
  2. 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 11 to January 10 and was credited in full to Deferred Revenue.

Required:

  1. 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.
  2. 3. Show how any of the liabilities related to these items should be reported on the companys balance sheet at December 31.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Disruption In The Audit Market

Authors: Krish Bhaskar, John Flower

1st Edition

0367220660, 978-0367220662

More Books

Students also viewed these Accounting questions

Question

Balance sheet presentation example

Answered: 1 week ago

Question

Whinchorice 202 sin noos

Answered: 1 week ago