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 $11,856 213 Medicare Tax Payable 3,120 214 Employees Federal Income Tax Payable 19,240 215 Employees State Income Tax Payable 18,720 216 State Unemployment Tax Payable 1,976 217 Federal Unemployment Tax Payable 624 218 U.S. Saving Bond Deductions Payable 5,000 219 Medical Insurance Payable 36,200 411 Operations Salaries Expense 1,259,000 511 Officers Salaries Expense 822,000 512 Office Salaries Expense 209,000 178,880 519 Payroll Tax Expense 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 $34,216 in payment of $11,856 of social security tax, $3,120 of Medicare tax, and $19,240 of employees' federal income tax due. Dec. 13 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Check My Work Medicare tax, and $19,240 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: $58,000 37,000 9,000 $104,000 Social security tax $6,240 Medicare tax 1,560 Federal income tax withheld 19,240 State income tax withheld 4,680 Savings bond deductions 2,500 Medical insurance deductions 6,032 Net amount (40,252) $63,748 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, $6,240; Medicare tax, $1,560; state unemployment tax, $490; federal unemployment tax, $160. Dec. 16 Issued Check No. 424 to Jay Bank for $34,840, in payment of $12,480 of social security tax, $3,120 of Medicare tax, and $19,240 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $36,200, in payment of the semiannual premium on the group medical insurance policy. Check My Work Dec. 27 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations Officers Office $56,000 37,000 9,000 $102,000 Deductions Social security tax $6,120 Medicare tax 1,530 Federal income tax withheld 18,666 State income tax withheld 4,590 Savings bond deductions 2,500 Net amount (33,406) $68,594 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, $6,120; Medicare tax, $1,530; state unemployment tax, $245; federal unemployment tax, $80. Dec. 27 Issued Check No. 543 for $27,990 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 $5,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $55,000 to the employee pension plan. The annual pension cost is $72,000. (Record both the payment and unfunded pension liability.) Required: Check My Work 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. Date Account Debit Credit 2 Dec. U.S. Saving Bond Deductions Payable 5,000 Cash Dec. Social Security Tax Payable 11,856 v 2 Medicare Tax Payable 3,120 v Employees Federal Income Tax Payable 19,240 Cash Dec. Operations Salaries Expense 13 Officers Salaries Expense 58,000 37,000 Office Salaries Expense 9,000 Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable Check My Work es% eBook Employees State Income Tax Payable U.S. Saving Bond Deductions Payable Medical Insurance Payable Salaries Payable Dec. Salaries Payable 13 Cash Dec. Payroll Tax Expense 13 Social Security Tax Payable Medicare Tax Payable - Dec 16 State Unemployment Tax Payable Federal Unemployment Tax Payable Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Cash Dec. Medical Insurance Payable 19 Check My Work Dec. Cash 27 Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable U.S. Saving Bond Deductions Payable Salaries Payable Dec. Salaries Payable 27 Cash Dec Payroll Tax Expense 27 Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Check My Work 00000 00000 LGO 1/1 items ore: 70.69% eBook Dec. 27 Employees State Income Tax Payable Cash Dec. U.S. Saving Bond Deductions Payable 31 Dec 31 Cash Pension Expense Cash Unfunded Pension Liability 0000000 0000000 2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $5,600; officers salaries, $3,700; office salaries, $9C taxes are immaterial and are not accrued. If an amount box does not require an entry, leave it blank. Date Account Dec. 31 Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Debit Salaries Payable 2b. Journalize the following adjusting entry on December 31: Vacation pay, $19,300. Check My Work Credit 2b. Journalize the following adjusting entry on December 31: Vacation pay, $19,300. Date Account Dec. 31 Vacation Pay Expense Vacation Pay Payable Debit Credit Feedback Check My Work Consider what taxes employees have to pay versus what taxes employers are required to pay. Employees' gross earnings have to be allocated to taxes, other deductions, and net pay. When paying a liability, what accounts would have to decrease? Recall that earned vacation time is an accrued expense adjustment. Check My Work