Payroll accounts and year-end entries Chart of Accounts Journal Instructions 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 211 212 $9,280 213 2,316 214 15,405 215 13,920 216 1.440 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 U.S. Saving Bond Deductions Payable Medical Insurance Payable Operations Salaries Expense Officers Salaries Expense Office Salaries Expense 217 430 218 $3,200 219 24.800 411 940,000 511 840,000 512 150.000 519 Payroll Tax Expense 136, 151 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: On page 10 of the joumal: nor Ice Chart No 417 in 20ls Ronin Shacali sunne hans foram Check My Work eBook The following transactions relating to payroll, payroll deductions, and payroll taxes occurred dunng 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 ta $2,3 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 $40.800 Officers 27,000 Office 6,400 $74,000 Deductions: Social security tax $ 4,440 Medicare tax 1.110 14.800 Federal income tax withheld State income tax withheld 3,330 Savings bond deductions 1.800 Medical insurance deductions 4.100 29,380 Net amount $44.620 13 Issued Check No.420 in payment of the net amount of the biweekly payroll Check My Work All work saved eBook 13 13 16 Issued Check No. 420 in payment of the net amount of the biweekly payroll Joumalized the entry to record payroll taxes on employees' earnings of December 13. social security tax $4.440: Medicare tax, S1,110, state unemployment tax, $350, federal unemployment tax. 5110 Issued Check No. 424 to Jay Bank for $25,900, in payment of $8,880 of social security tax, 52.220 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 On page 11 of the joumal Dec. 27 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations $40,200 Officers 27.800 Office 8.800 $74,600 Deductions: Social security tax 5 4.476 Medicare tax 1.110 Federal income tax withheld 14,784 State income tax withheld 3,357 Savings bond deductions 1.600 25,310 Net amount $49,284 de My Work 27 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, 5220; federal unemployment tax, $80. Issued Check No. 543 for $20,007 to State Department of Revenue in payment of employees' state income tax due on December 31. Issued Check No. 545 to Jay Bank for $3,200 to purchase U.S. savings bonds for employees Paid $48.000 to the employee pension plan. The annual pension cost is 564,000. (Record both the payment and unfunded pension liability) 31 31 Required: 1. Joumalize 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 jouma, joumalize 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 55,610 office salaries, $1,380 The payroll taxes are immaterial and are not accrued b. Vacation pay $15400 Journal 1. Joumalize the transactions on pages 10 and 11 of the joumal Refer to the Chart of Accounts for exact wording of account ite Scroll down to access pages 11 How does coing on Rack My Work eBook HOW Te WOZZ PAGE 10 JOURNAL Score: 298/356 ACCOUNTING EQUATION POST. REE CREDIT ASSETS LABILITIES EQUITY DATE DESCRIPTION Dec. 2 US Saving Bond Deductions Payable DEART 5,200.00 1 2 Cash 3,200.00 1 9,280.00 1 Dec2 Social Security Tax Payable Medicare Tax Payable 2,31600 . 5 Employees Federal Income Tax Payable 15,405.00 Cash 27,001.00 40,500.00 Dec 13 Operations Salaries Expense Officers Salaries Expense Office Salaries Expense 27,000.00 + 6,400.00 4440.00 1110,00 11 12 Social Security Tex Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable US Siving Bond Deductions Payable 1 14,500.00 3,350.00 11 1 24 1,600.00 11 Medical Insurance Payable 4,100.00 Salatles Payabut 44620.00 11 Dec 1 Payrox Expert 6010,00 6,010,00 San Payable Dec 31 Swale 50690.00 Chuck My Work 33 Medical Insurance Payable 1 4,100.00 44,620.00 16 Salaries Payable 1 1 6.010.00 Dec 31 Payroll Tax Expense Salaries Payable 11 6,010,00 7 19 Dec 31 Salaries Payable 50,630.00 1 22 Cash 50,630.00 1 21 Dec 16 Social Security Tax Payable 8,880,00 1 12 Medicare Tax Payable 2,220.00 . 23 Employees Federal Income Tax Payable 14,800.00 2 24 Cashi 25,900.00 . 19 Dec 19 Medical Insurance Payable 28,700.00 13 Cash 28,700.00 21 Kibe 40,200.00 21 mpok 27,800.00 29 po 6,600.00 Points How does groging or PAGE 1 JOURNAL Score: 165/283 ACCOUNTING EQUATION Check My Work PA JOURNAL Score: 165/283 ACCOUNTING EQUATIO DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EC pl pll mook Operations Salaries Expense Office Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable US. Saving Bond Deductions Payable Salaries Payable Dec 27 Payroll Tax Expense Salaries Payable Dec 27 Salaries Payable 55,179.00 Cash 55.179.00 Dec 27 Employees State Income Tax Payable 20,60700 Cash 20,60700 . Work b. Vacation pay $15,400 How does grading work! PAGE 12 JOURNAL Score: 53/75 ACCOUNTING EQUATION POST. RET DEBIT CREDIT ASSETS LABILITIES 1 EQUITY 2 DATE DESCRIPTION Adjusting Entries Dec 31 Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Vacation Pay Expenses Dec 31 Salaries Payable Vacation Pay Payable 8,570.00 5,610.00 1,380.00 $ 15,400.00 1,556.00 1,540.00 Points 9.80/14 Feedback Check My World 1. Consider what taxes employees have to pay versus what taxes employers are required to pay Employees grossemings have to be located to taxes, other deductions, and net pay 2) When paying ability what accounts would have to decrease? eck My Work