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: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2 Issued Check No. 410 for $7,000 to Jay Bank to purchase U.S. savings bonds for employees. Dec. 2. Issued Check No. 411 to Jay Bank for $53,956 in payment of $18,696 of social security tax, $4,920 of Medicare tax, and $30,340 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: 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, $9,840; Medicare tax, $2,460; state unemployment tax, $780; federal unemployment tax, $260. Dec. 16 Issued Check No. 424 to Jay Bank for $54,940, in payment of $19,680 of social security tax, $4,920 of Medicare tax, and $30,340 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $57,100, in payment of the semiannual premium on the group medical itsurance policy. Dec. 27 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: 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, $9,600; Medicare tax, $2,400; state unemployment tax, $390; federal unemployment tax, $130. Dec. 27 Issued Check No. 543 for $44,100 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 $7,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $86,000 to the employee pension plan. The annual pension cost is $112,000. (Record both the payment and unfunded pension liability.) Journalize the transactions. If an-amount box does not require an entry, leave it blank. For December 13th transactions, (a.) record the paysoll and (b.) payment of salaries. For December 27 th tonnsactions, (a.) recoed the payroll, (bu) payment of salaries, (c) tecord the taxes, and (d.) paymient of taxes. Dec. 13 (b.) Dec. 13-Taxes Dec. 16-Taxes Dec. 19-Ins. Dec. 27 (a.) Dec. 27 (b.) Dec, 27 (c.) Dec. 27 (d.) Dec. 31-Bonds Dec. 31 Journaluze the following adjusting entry on December. 31 . Salanes accrued- operabons salaries, 58,700 ; officers salaries, 55,900 ; office salaries, 51,400 . The payrill taxes are immaterial and are not accued. If an amount box does not require an entry, leave it blank 26. foumalize the following adjushing entry on December 3t Vacation par, 330,100
