Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lakeview company completed the following two trans

Lakeview Company completed the following two transactions. The annual accounting period ends December 31. ...

50.1K

Verified Solution

Question

Accounting

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 ($100,000), payroll deductions for income tax ($10,000), payroll deductions for FICA ($7,500), payroll deductions for American Cancer Society ($3,750), employer contributions for FICA (matching), and state and federal unemployment taxes ($875). 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 $6,375 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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

8 An old pinball game machine starts play with a handle pulled back a distance...

Geometry
1.2K views

Dilate each figure and if possible give the function for the dilation given the following...

Calculus
1.2K views

Evaluate the following integral in spherical coordinates The integral calculates the volume a R6 9...

Calculus
1.2K views

Evaluate ? {(9x + 25) /x +( 6x +9)} dx using the method of...

Calculus
1.2K views

If you are given the rate of change of a function f, and an interval,...

Accounting
1.2K views

Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second...

Accounting
1.2K views

Marked out of ABC Company has a beginning inventory of 600 units at $9 per...

Accounting
1.2K views

After the success of the companys first two months, Santana Rey continues to operate Business...

Accounting
1.2K views

Cullumber Company has stockholders equity of $280,000 and net income of $50,400. It has a...

Accounting
1.2K views

Required: 9-a. How much net income did Lazy Sofa Furniture, Incorporated, generate during 2021? 9-b....

Accounting
1.2K views

Brief Exercise A-2 For each of the following cases, indicate (a) what interest rate columns...

Finance
1.2K views

Q43. The beta of ABC Co. stock is the slope of Select an answer and...