Lakeview Company completed the following two transactions. The annual accounting period endsDecember 31.a. On December 31, calculated the payroll, which indicates gross earnings for wages ($80,000),payroll deductions for income tax ($8,000), payroll deductions for FICA ($6,000), payrolldeductions for American Cancer Society ($3,000), employer contributions for FICA (matching), and state and federal unemployment taxes ($600). Employees were paid in cash, but payments for the corresponding payroll deductions have not yet been made and employer taxeshave not yet been recorded.b. Collected rent revenue of $6,000 on December 10 for office space that Lakeview rented toanother business. The rent collected was for 30 days from December 11 to January 10 and wascredited in full to Unearned Revenue.Required:1. Give the journal entries to record payroll on December 31.2. Give ( a ) the journal entry for the collection of rent on December 10 and ( b ) the adjusting journal entry on December 31.3. Show how any liabilities related to these items should be reported on the company’s balancesheet at December 31.
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 ($80,000),
payroll deductions for income tax ($8,000), payroll deductions for FICA ($6,000), payroll
deductions for American Cancer Society ($3,000), employer contributions for FICA (matching), and state and federal
have not yet been recorded.
b. Collected rent revenue of $6,000 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 Unearned Revenue.
Required:
1. Give the journal entries to record payroll on December 31.
2. Give ( a ) the
3. Show how any liabilities related to these items should be reported on the company’s balance
sheet at December 31.
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