Lakeview 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 ($40,000), payroll deductions for income tax ($4,000), payroll deductions for FICA ($3,000), payroll deductions for American Cancer Society ($1,500), employer contributions for FICA (matching), and state and federal unemployment taxes ($350). 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 $5,250 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 Deferred Revenue. Required: 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 3. Show how any of the liabilities related to these items should be reported on the company's balance sheet at December 31 No Date Dobit Credit 1 Dec 31 40,000 1,500 General Journal Salaries and Wages Expense State and Federal Unemployment Taxes Payable FICA Payable Payroll Tax Expense Cash 3,000 4.000 31,500 4,360 2 Dec 31 4,000 Payroll Tax Expense FICA Payable State and Federal Unemployment Taxes Payable 360 5,250 3 Dec 10 Cash Deferred Revenue 5,250 4.000 4 Dec 31 Deferred Revenue Service Revenue 4,000 X LAKEVIEW COMPANY Balance Sheet (partial) At December 31 $ 0