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	$9,348
213	Medicare Tax Payable	2,460
214	Employees Federal Income Tax Payable	15,170
215	Employees State Income Tax Payable	14,760
216	State Unemployment Tax Payable	1,558
217	Federal Unemployment Tax Payable	492
218	Retirement Savings Deductions Payable	4,000
219	Medical Insurance Payable	28,500
411	Operations Salaries Expense	993,000
511	Officers Salaries Expense	648,000
512	Office Salaries Expense	165,000
519	Payroll Tax Expense	141,040

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:

Dec. 2.

Issued Check No. 410 for $4,000 to Jay Bank to invest in a retirement savings account for employees.

2.

Issued Check No. 411 to Jay Bank for $26,978 in payment of $9,348 of social security tax, $2,460 of Medicare tax, and $15,170 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	$46,000
Officers	29,000
Office	7,000	$82,000
Deductions:
Social security tax	$4,920
Medicare tax	1,230
Federal income tax withheld	15,170
State income tax withheld	3,690
Retirement savings deductions	2,000
Medical insurance deductions	4,756	31,766
Net amount		$50,234

13.

Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account.

13.

Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, $4,920; Medicare tax, $1,230; state unemployment tax, $390; federal unemployment tax, $130.

16.

Issued Check No. 424 to Jay Bank for $27,470, in payment of $9,840 of social security tax, $2,460 of Medicare tax, and $15,170 of employees' federal income tax due.

19.

Issued Check No. 429 to Sims-Walker Insurance Company for $28,500, in payment of the semiannual premium on the group medical insurance policy.

27.

Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

Salary distribution:
Operations	$45,000
Officers	29,000
Office	7,000	$81,000
Deductions:
Social security tax	$4,860
Medicare tax	1,215
Federal income tax withheld	14,823
State income tax withheld	3,645
Retirement savings deductions	2,000	26,543
Net amount		$54,457

27.

Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account.

27.

Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, $4,860; Medicare tax, $1,215; state unemployment tax, $195; federal unemployment tax, $65.

27.

Issued Check No. 543 for $22,095 to State Department of Revenue in payment of employees' state income tax due on December 31.

31.

Issued Check No. 545 to Jay Bank for $4,000 invest in a retirement savings account for employees.

31.

Paid $43,000 to the employee pension plan. The annual pension cost is $56,000. (Record both the payment and unfunded pension liability.)

Required:

1. Journalize the transactions. If an amount box does not require an entry, leave it blank. For December 16th transactions, (a.) record the payroll and (b.) payment of salaries. For December 30th transactions, (a.) record the payroll, (b.) payment of salaries, (c.) record the taxes, and (d.) payment of taxes.

2b. Journalize the following adjusting entry on December 31: Vacation pay, $15,000. If an amount box does not require an entry, leave it blank. \begin{tabular}{|llll|} \hline Date & Account & Debit & Credit \\ \hline 31 & - & & \\ & & & \\ & & & \\ \hline \end{tabular}