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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
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 $12,996 213 Medicare Tax Payable 3,420 214 Employees Federal Income Tax Payable 21,090 215 Employees State Income Tax Payable 20,520 216 State Unemployment Tax Payable 2,166 217 Federal Unemployment Tax Payable 684 218 U.S. Saving Bond Deductions Payable 5,000 219 Medical Insurance Payable 39,700 411 Operations Salaries Expense 1,381,000 511 Officers Salaries Expense 901,000 1512 Office Salaries Expense. 229,000 519 Payroll Tax Expense 196,080. 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 purchase U.S. savings bonds for employees. Dec. 2 Issued Check No. 411 to Jay Bank for $37,506 in payment of $12,996 of social security tax, $3,420 of Medicare tax, and $21,090 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 Officers Office Deductions: $64,000 40,000. 10,000 114,000 Social security tax 6,840 Medicare tax 1,710 Federal income tax withheld 21,090 Social security tax 6,540 Medicare tax 1,710 Federal income tax withheld 21,090 State income tax withheld 5,130 Savings bond deductions 2,500 Medical insurance deductions 6,612 43,882 Net amount 70,118 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, $6,840; Medicare tax, $1,710; state unemployment tax, $540; federal unemployment tax, $100. Dec 16 Issued Check No. 424 to Jay Bank for $38,190, in payment of $13,600 of social security tax, $3,420 of Medicare tax, and $21,090 of employees federal income tax de Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $39,700, 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 $62,000 officers Office 10,000 10,000 112,000 Deductions Social security tax 6.720 Medicare tax 1,000 federal income tax withheld 20,490 State income tax withheld 5,0407 Savings bond deductions 2,500 36,436 Net amount 25,564 Dec. 27 Issued Check No. 541 in payment of the net amount of the biweekly payrol Medicare tax 1,680 Federal income tax withheld 20,496 State income tax withheld 5,040 Savings bond deductions 2,500 36,436 Net amount 75,564 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, $6,720; Medicare tax, $1,680; state unemployment tax, $270; federal unemployment tax, $90. Dec. 27 Dec. 31 Issued Check No. 543 for $30,690 to State Department of Revenue in payment of employees' state income tax due on December 31. Issued Check No. 545 to Jay Bank for $5,000 to purchase U.S. savings bonds for employees. Dec. 31 Required: Paid $60,000 to the employee pension plan. The annual pension cost is $78,000. (Record both the payment and unfunded pension liability.) 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 Decembe payment of salaries, (c.) record the taxes, and (d.) payment of taxes. Date Account Dec. 2 Medical Insurance Payable Cash Debit 5,000 Credit 5,000 Dec. 2 Social Security Tax Payable 12,996 v Medicare Tax Payable 3,420 V I'mployees Federal Income Tax Payable 21,090 V Cash 37,506 Dec. 13 Operations Salaries Expense Officers Salaries Expense 64,000 40,000
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