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 ($185,000), payroll deductions for income tax ($18,500), payroll deductions for FICA ($21,000), payroll deductions for United Way ($4,200), employer contributions for FICA (matching), and state and federal unemployment taxes ($2,400). 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 $4,920 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 & 2.	Complete the required journal entries to record payroll on December 31, collection of rent on December 10 and the adjusting journal entry on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
	TIP: Notice that the revenue recorded on December 10 includes revenue for 10 days (out of 30) that isnt earned until after December 31.

1

Record the wages expense, including payroll deductions.

2

Record the payroll tax expense.

3

Record the collection of 30 days rent in advance amounting to $4,920.

4

Record the adjusting entry relating to rent.

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

The full content of this question did not transfer to your assignment. Please try again. reload

RIVERSIDE COMPANY
Balance Sheet (partial)
At December 31

+