The following accounts, with the balances indicated, appear in the ledger of Yukon Kayak Co. on December

Question:

The following accounts, with the balances indicated, appear in the ledger of Yukon

Kayak Co. on December 1 of the current year:


Salaries Payable 212 Social Security Tax Payable 213 Medicare Tax Payable 214 Employees Federal Income Tax Payable 215 E


The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:

Dec. 1. Issued Check No. 510 to Tidy Insurance Company for $2,000, in payment of the semiannual premium on the group medical insurance policy

2. Issued Check No. 511 to Johnson Bank for $13,656, in payment for $4,880 of social security tax, $1,236 of Medicare tax, and $7,540 of employees’ federal income tax due.

3. Issued Check No. 512 for $1,800 to Johnson Bank to purchase U.S. savings bonds for employees.

14. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:



The following accounts, with the balances indicated,


Dec. 14. Issued Check No. 520 in payment of the net amount of the biweekly payroll.

14. Journalized the entry to record payroll taxes on employees’ earnings of December 14: social security tax, $2,288; Medicare tax, $624; state unemployment tax, $250; federal unemployment tax, $60.

17. Issued Check No. 528 to Johnson Bank for $13,229, in payment for $4,576 of social security tax, $1,248 of Medicare tax, and $7,405 of employees’ federal income tax due.

28. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

The following accounts, with the balances indicated,


28. Issued Check No. 540 for the net amount of the biweekly payroll.

28.  Journalized the entry to record payroll taxes on employees’ earnings of December 28: social security tax, $2,300; Medicare tax, $639; state unemployment tax, $120; federal unemployment tax, $30.

30. Issued Check No. 551 for $10,827 to Johnson Bank, in payment of employees’ state income tax due on December 31.

30. Issued Check No. 552 to Johnson Bank for $1,800 to purchase U.S. savings bonds for employees.

31. Paid $44,000 to the employee pension plan. The annual pension cost is $52,000. (Record both the payment and the unfunded pension liability.)


Instructions

1. Journalize the transactions.

2. Journalize the following adjusting entries on December 31:

(a) Salaries accrued: sales salaries, $2,540; officer’s salaries, $1,240; office salaries, $480. The payroll taxes are immaterial and are not accrued.

(b) Vacation pay, $10,600.

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