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Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current
Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: 211 Salaries Payable 212 Social Security Tax Payable $16,416 213 Medicare Tax Payable 4,320 214 Employees Federal Income Tax Payable 26,640 215 Employees State Income Tax Payable 25,920 216 State Unemployment Tax Payable 2,736 217 Federal Unemployment Tax Payable 864 218 U.S. Saving Bond Deductions Payable 6,000 219 Medical Insurance Payable 50,100 411 Operations Salaries Expense 1,744,000 511 Officers Salaries Expense 1,138,000 512 Office Salaries Expense 289,000 519 Payroll Tax Expense 247,680 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2 Issued Check No. 410 for $6,000 to Jay Bank to purchase U.S. savings bonds for employees. Dec. 2 Issued Check No. 411 to Jay Bank for $47,376 in payment of $16,416 of social security tax, $4,320 of Medicare tax, and $26,640 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 $79,000 Officers 52,000 Office 13,000 $144,000 Deductions: Social security tax $8,640 Medicare tax 2,160 Federal income tax withheld 26,640 State income tax withheld 6,480 Savings bond deductions 3,000 Medical insurance deductions 8,352 (55,272) Net amount $88,728 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, $8,640; Medicare tax, $2,160; state unemployment tax, $680; federal unemployment tax, $220. Dec. 16 Issued Check No. 424 to Jay Bank for $48,240, in payment of $17,280 of social security tax, $4,320 of Medicare tax, and $26,640 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $50,100, 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 $77,000 Officers 52,000 Office 13,000 $142,000 Deductions: Social security tax $8,520 Medicare tax 2,130 Federal income tax withheld 25,986 State income tax withheld 6,390 Savings bond deductions 3,000 (46,026) Net amount $95,974 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, $8,520; Medicare tax, $2,130; state unemployment tax, $340; federal unemployment tax, $110. Dec. 27 Issued Check No. 543 for $38,790 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 $6,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $76,000 to the employee pension plan. The annual pension cost is $99,000. (Record both the payment and unfunded pension liability.) Required. Required: 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. For December 13th transactions, (a.) record the payroll and (b.) payment of salaries. For December 27th transactions, (a.) record the payroll, (b.) payment of salaries, (c.) record the taxes, and (d.) payment of taxes. 2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $7,700; officers salaries, $5,200; office salaries, $1,300. The payroll taxes are immaterial and are not accrued. If an amount box does not require an entry, leave it blank. 2b. Journalize the following adjusting entry on December 31: Vacation pay, $26,600
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