Prepare the journal entry for the collection of rent

Assignment Help Accounting Basics

Reference no: EM131974077

Problem

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 ($320,000), payroll deductions for income tax ($34,000), payroll deductions for FICA ($26,000), payroll deductions for United Way ($4,600), employer contributions for FICA (matching) and state and federal unemployment taxes ($2,600). 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 $1,680 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 Unearned Revenue.

Complete the required journal entries for the above transactions as shown below:

(i) Prepare the entries required on December 31 to record payroll.
(ii) Prepare the journal entry for the collection of rent on December 10.
(iii) Prepare the adjusting journal entry on December 31.

Reference no: EM131974077

Questions Cloud

Presence of an externality in a market : Describe two methods for correcting the inefficiencies caused by the presence of an externality in a market.

Inelastic portion of the linear demand curve : Can the profit-maximizing monopolist produce an output that lies in the inelastic portion of the linear demand curve it faces? Why or why not?

Prepare a production cost report : The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017. Prepare a production cost report.

Determine the total product cost for the year : Santiago Manufacturing Company began operations on January 1. During the year, it started and completed. Determine the total product cost for the year.

Prepare the journal entry for the collection of rent : Prepare the entries required on December 31 to record payroll. Prepare the journal entry for the collection of rent on December 10.

What is the answer of question two : What is the answer of question two? How to explain the paradox of thrift?

Prepare an income statement for the current month : Sanyu Sony started a new business and completed these transactions during December. Prepare an income statement for the current month.

Can the economy operate at point n : Can the economy operate at point N? Explain why or why not. Can the economy operate at point I? Explain why or why not.

Compute service revenue and operating expenses : Sarasota Company had cash receipts from customers in 2017 of $163,750. Cash payments for operating expenses. Compute service revenue and operating expenses.

User Account

All Pages