Sandler 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 ($260,000),payroll deductions for income tax ($28,000), payroll deductions for FICA ($20,000), payrolldeductions for United Way ($4,000), employer contributions for FICA (matching), and stateand federal unemployment taxes ($2,000). Employees were paid in cash, but payments for thecorresponding payroll deductions have not been made and employer taxes have not yet beenrecorded.b. Collected rent revenue of $1,500 on December 10 for office space that Sandler 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 entries required on December 31 to record payroll.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.

Question

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 ($260,000),
payroll deductions for income tax ($28,000), payroll deductions for FICA ($20,000), payroll
deductions for United Way ($4,000), employer contributions for FICA (matching), and state
and federal unemployment taxes ($2,000). 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 $1,500 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.
Required:
1. Give the entries required on December 31 to record payroll.
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 balance
sheet at December 31.

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