PA10-3 (Algo) Recording and Reporting Current Liabilities [LO 10-2] 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 ($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. 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. & 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 companys balance sheet at December 31.

No	Date	General Journal	Debit	Credit
1	December 31	Salaries and Wages Expense	68,000
		Withheld Income Taxes Payable		6,800
		FICA Payable		5,100
		Charitable Contributions Payable		2,550
		Cash		53,000
2	December 31	Payroll Tax Expense	3,145
		FICA Payable		5,100
		State and Federal Unemployment Taxes Payable		595
3	December 10	Cash	5,775
		Dividend Revenue		5,775
4	December 31	Deferred Revenue	3,775
		Rent Revenue		3,775

Show how any of the liabilities related to these items should be reported on the companys balance sheet at December 31. (Do not round intermediate calculations.)

LAKEVIEW COMPANY
Balance Sheet (partial)
At December 31
Current Liabilities
Income Tax Payable	$6,800
FICA Payable	5,100
Charitable Contributions Payable	2,550
State and Federal Unemployment Tax Payable	595
Deferred Revenue
Total Current Liabilities	$15,045