eBook Print Item Payroll Accounts and Year-End Entries 211 216 The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current Salaries Payable 212 Social Security Tax Payable $13,680 213 Medicare Tax Payable 3,500 214 Employees Federal Income Tax Payable 22,200 215 Employees State Income Tax Payable 21,600 State Unemployment Tax Payable 2,280 217 Federal Unemployment Tax Payable 720 218 U.S. Saving Bond Deductions Payable 5,000 219 Medical Insurance Payable 41,800 411 Operations Salaries Expense 1,453,000 511 Officers Salaries Expense 948.000 512 Office Salaries Expense 241,000 Payroll Tax Expense 206,400 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2 Issued Check No. 410 for $5,000 to Jay Bank to purchase U.S. savings bords for employees. Dec. 2 Issued Check No. 411 to Jay Bank for $39,480 in payment of $13,680 of social security tax, $3,600 of Medicare tax, and $22,200 of employees' federal income tax due. Dec. 13 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations $67,000 Officers 42.000 11,000 120,000 Office 519 Deductions: Social security tax 7,200 1,800 Medicare tax Federal income tax withheld 22,200 State income tax withheld 5.400 Check My Work Socal security tax 7200 Medicare tax 1,800 22,200 5,400 Federal income tax withheld State income tax withheld Savings bond deductions Medical insurance deductions Net amount 2,500 6,960 46,060 73,940 Dec. 13 Issued Check No. 420 in payment of the net amount of the biweekly payroll Dec. 13 Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, $7.200; Medicare tax, $1,800; state unemployment tax, $570; federal unemployment tax, $190. Dec. 16 Issued Check No, 424 to Jay Bank for $40,200, in payment of $14,400 of social security tax, $3,600 of Medicare tax, and $22,200 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $41,800, in payment of the semiannual premium on the group medical insurance policy. Dec. 27 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations $65,000 officers 42,000 Office 11,000 118,000 Deductions: Social security tax 7,080 Medicare tax 1,770 Federal income tax withheld 21,594 State income tax withheld 5,310 Savings bond deductions 2,500 38,254 Net amount 79,746 Dec. 27 Dec. 27 Issued Check No. 541 in payment of the net amount of the biweekly payroll. Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, $7.080,- Medicare tax, $1,770: state unemployment tax. $285, federal unemployment tax $95. Dec. 27 Issued Check No. 541 in payment of the net amount of the biweekly payroll Dec. 27. Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, $7,080; Medicare tax, $1,770; state unemployment tax, $285; federal unemployment tax, $95. Dec. 27 Issued Check No. 543 for $32,310 to State Department of Revenue in payment of employees' state income tax due on December 31. Dec. 31 Issued Check No. 545 to Jay Bank for $5,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $63,000 to the employee pension plan. The annual pension cost is $82,000. (Record both the payment and unfunded pension liability.) Required: 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. For December 13th transactions, (a.) of salaries, (c.) record the taxes, and (d.) payment of taxes. Date Account Debit Credit Dec. 2 Dec. 2 Dec. 13