Instructions The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: Account No. Balance 211 212 $9.270 213 2.300 214 15,485 215 13.918 216 1,310 Account Name Salaries Payable Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Retirement Savings Deductions Payable Medical Insurance Payable Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Payroll Tax Expense 217 480 218 3,000 219 27,000 411 930.000 511 630,000 512 160.000 519 138,351 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: On page 10 of the journal: Dec 2 2 Issued Check No. 410 for $3,000 to Jay Bank to invest in a retirement savings account for employees 2 Issued Check No. 411 to Jay Bank for $27.055, in payment of $9.270 of social security tax 82.300 of Medicare tax, and $15.485 of employees' federal income tax due. 13 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations $41,400 Officers 28,600 Office 6,600 $74,600 Deductions: Social security tax $ 4,476 Medicare tax 1,119 Federal income tax withheld 14.920 State income tax withheld 3,357 Retirement savings deductions 1,500 Medical insurance deductions 4,500 29.872 Net amount $44,728 13 Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account 13 16 Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, S4,478; Medicare tax, S1,119; state unemployment tax, $360; federal unemployment tax, $125. Issued Check No. 424 to Jay Bank for $26, 110, in payment of $8,952 of social security tax, S2,238 of Medicare tax, and $14,920 of employees' federal income tax due. Issued Check No. 429 to Sims-Walker Insurance Company for $31.500, in payment of the semiannual premium on the group medical insurance policy. 19 On page 11 of the journal Dec 27 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations $41,000 Officers 27.400 Office 6,800 $75,200 Deductions: Social security tax $ 4,512 Medicare tax 1,128 14,884 Federal income tax withheld State income tax withheld 3,384 Retirement savings deductions 1,500 25,408 Net amount $49,792 27 Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27 27 Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, 54,512: Medicare tax, S1,128: state unemployment tax, S210; federal unemployment tax, $80. Issued Check No. 543 for $20,857 to State Department of Revenue in payment of employees' state income tax due on December 31. Issued Check No. 545 to Jay Bank for $3,000 to invest in a retirement savings account for employees. Paid $51,000 to the employee pension plan. The annual pension cost is $88,000. (Record both the payment and unfunded pension liability.) 31 31 Required: 1. Journalize the transactions on pages 10 and 11 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals wa automatically indent a credit entry when a credit amount is entered. 2. On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered): a. Salaries accrued operations salaries $8.530: officers salaries 55,640: office salaries. $1,350. The payroll taxes are immaterial and are not accrued b. Vacation pay, 515,300 Journal 1. Journalize the transactions on pages 10 and 11 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Scroll down to access pages 11 and 12 of the journal PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 10 19 20 21 22 23 24 25 27 28 29 Journal PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 : 4 5 6 7 9 10 12 18 20 21 22 23 2. On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered): a Salaries accrued operations salaries. 58.530; officers salaries, 55,640: office salaries 51,350. The payroll taxes are immaterial and are not accrued b. Vacation pay, 515,300 PAGE 12 JOURNAL ACCOUNTING EQUATION DATE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY DESCRIPTION Adjusting Entries 1 2 3 4 5 6 7 Chart of Accounts CHART OF ACCOUNTS Garcon Co. General Ledger REVENUE ASSETS 110 Cash 111 Accounts Receivable 410 Sales 810 Interest Revenue 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation Office Equipment EXPENSES 411 Operations Salaries Expense 412 Cost of Merchandise Sold 511 Officers Salaries Expense 512 Office Salaries Expense 519 Payroll Tax Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Social Security Tax Payable 213 Medicare Tax Payable 214 Employees Federal Income Tax Payable 215 Employees State Income Tax Payable 216 State Unemployment Tax Payable 217 Federal Unemployment Tax Payable 218 Retirement Savings Deductions Payable 219 Medical Insurance Payable 220 Interest Payable 221 Notes Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable EQUITY 310 Owner, Capital 311 Owner. 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