On page 11 of the journal:
| Dec. | 27 | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: |
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: Account No. Account Name Balance 211 Salaries Payable 212 Social Security Tax Payable $9,280 213 Medicare Tax Payable 2,316 214 Employees Federal Income Tax Payable 15,405 215 13,920 Employees State Income Tax Payable State Unemployment Tax Payable 216 1,440 217 Federal Unemployment Tax Payable 430 218 U.S. Saving Bond Deductions Payable $3,200 219 Medical Insurance Payable 24,600 411 Operations Salaries Expense Officers Salaries Expense 511 940,000 640,000 150,000 512 Office Salaries Expense 519 Payroll Tax Expense 136,151 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 $3,200 to Jay Bank to purchase U.S. savings bonds for employees. Issued Check No. 411 to Jay Bank for $27,001 in payment of $9,280 of social security tax, $2,316 of Medicare tax, and $15,405 of employees' federal income tax due. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 13 Salary distribution: Operations $40,600 Officers 27,000 Office 6,400 $74,000 Deductions: Social security tax $ 4,440 Medicare tax 1,110 Federal income tax withheld 14,800 State income tax withheld 3,330 Savings bond deductions 1,600 Medical insurance deductions 4,100 29,380 Net amount $44,620 13 13 16 Issued Check No. 420 in payment of the net amount of the biweekly payroll. Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, $4,440; Medicare tax, $1,110; state unemployment tax, $350; federal unemployment tax, $110. Issued Check No. 424 to Jay Bank for $25,900, in payment of $8,880 of social security tax, $2,220 of Medicare tax, and $14,800 of employees' federal income tax due. Issued Check No. 429 to Sims-Walker Insurance Company for $28,700 in payment of the semiannual premium on the group medical insurance policy. 19 Salary distribution: Operations $40,200 Officers 27,800 Office 6,600 $74,600 Deductions: Social security tax $ 4,476 Medicare tax 1,119 Federal income tax withheld 14,764 State income tax withheld 3,357 Savings bond deductions 1,600 25,316 Net amount $49,284 27 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, $4,476; Medicare tax, $1,119; state unemployment tax, $220; federal unemployment tax, $80. Issued Check No. 543 for $20,607 to State Department of Revenue in payment of employees' state income tax due on December 31. 27 31 31 Issued Check No. 545 to Jay Bank for $3,200 to purchase U.S. savings bonds for employees. Paid $48,000 to the employee pension plan. The annual pension cost is $64,000. (Record both the payment and unfunded pension liability.) Required: 1. Journalize the transactions on pages 10 and 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles. 2. On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the Chart of Accounts for exact wording of account titles): a. Salaries accrued: operations salaries, $8,570; officers salaries, $5,610, office salaries, $1,380. The payroll taxes are immaterial and are not accrued. b. Vacation pay, $15,400
