Question 1 of 4 1 value 2500 points PB103 Recording and Repo

Question 1 (of 4) 1. value: 25.00 points PB10-3 Recording and Reporting Current Liabilities [LO 10-2] Sandler 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 ($340,000), payrol deductions for income tax ($36,000), payroll deductions for FICA ($28,000), payroll deductions for United Way ($4,800), employer contributions for FICA (matching) and state and federal unemployment taxes ($2,800). Employees were paid in cash, but payments for the corresponding payroll deductions have not been made and employer taxes have not yet been recorded. b. Collected rent revenue of $1,740 on December 10 for office space that Sandler rented to another business. The rent collected was for 30 days from December 11 to January 10 and was credited in full to Required 1. &2. Complete the required journal entries for the above transactions as shown below ) Prepare the entries required on December 31 to record payroll. () Prepare the journal entry for the collection of rent on December 10. (ilil) Prepare 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.) View transaction list

Solution

Date General Journal Debit Credit 31-Dec Salaries and wages $370,800.00 With held Income Tax Payable $370,800.00 31-Dec Payrolll Tax expenses $ 30,800.00 FICA Payable $ 28,000.00    State and Federal Unemployment Tax Payable $    2,800.00 10-Dec Cash $    1,740.00 Rent Revenue $    1,595.00 Unearned Revenue $       145.00 31-Dec Unearned rent revenue $       145.00 Rent $       145.00 Balance Sheet Particulars Amount With held Income Tax Payable $    370,800.00 FICA Payable $       28,000.00 State and Federal Unemployment Tax Payable $         2,800.00 Unearned Revenue $             145.00