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 $12,426 213 3,270 214 20,165 215 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 Retirement Savings Deductions Payable 19,620 216 2,071 217 654 218 5,000 219 Medical Insurance Payable 37,900 411 Operations Salaries Expense 1,320,000 511 Officers Salaries Expense 861,000 512 Office Salaries Expense 219,000 519 Payroll Tax Expense 187,480 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2. Issued Check No. 410 for $5,000 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for $35,861 in payment of $12,426 of social security tax, $3,270 of Medicare tax, and $20,165 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 $60,000 Officers 39,000 Office 10,000 $109,000 Deductions: $6,540 1,635 20,165 Social security tax Medicare tax Federal income tax withheld State income tax withheld Retirement savings deductions Medical insurance deductions 4,905 2,500 6,322 42,067 Net amount $66,933 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, $6,540; Medicare tax, $1,635; state unemployment tax, $520; federal unemployment tax, $170. 16. Issued Check No. 424 to Jay Bank for $36,515, in payment of $13,080 of social security tax, $3,270 of Medicare tax, and $20,165 of employees' federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for $37,900, 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 $58,000 Officers 39,000 Office 9,000 $106,000 Deductions: Social security tax $6,360 Medicare tax 1,590 Federal income tax withheld 19,398 State income tax withheld 4,770 Retirement savings deductions 2,500 34,618 Net amount $71,382 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, $6,360; Medicare tax, $1,590; state unemployment tax, $260; federal unemployment tax, $85. 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, $6,360; Medicare tax, $1,590; state unemployment tax, $260; federal unemployment tax, $85. 27. Issued Check No. 543 for $29,295 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 $5,000 invest in a retirement savings account for employees. 31. Paid $57,000 to the employee pension plan. The annual pension cost is $74,000. (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. Date Account Debit Credit 2 2 13 (a.) 13 (b.) = 13-Taxes 16-Taxes 19-Ins. = 27 (a.) 27 (b.) II 27 (c.) 27 (d.) 31-Bonds 31 2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $5,800; officers salaries, $3,900; office salaries, $900. The payroll taxes are immaterial and are not accrued. If an amount box does not require an entry, leave it blank. Date Account Debit Credit 31 2b. Journalize the following adjusting entry on December 31: Vacation pay, $20,000. If an amount box does not require an entry, leave it blank. Date Account Debit Credit 31