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	$18,354
213	Medicare Tax Payable	4,830
214	Employees Federal Income Tax Payable	29,785
215	Employees State Income Tax Payable	28,980
216	State Unemployment Tax Payable	3,059
217	Federal Unemployment Tax Payable	966
218	U.S. Saving Bond Deductions Payable	7,000
219	Medical Insurance Payable	56,000
411	Operations Salaries Expense	1,950,000
511	Officers Salaries Expense	1,272,000
512	Office Salaries Expense	324,000
519	Payroll Tax Expense	276,920

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 $52,969 in payment of $18,354 of social security tax, $4,830 of Medicare tax, and $29,785 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	$88,000
Officers	58,000
Office	15,000	161,000
Deductions:
Social security tax	9,660
Medicare tax	2,415
Federal income tax withheld	29,785
State income tax withheld	7,245
Savings bond deductions	3,500
Medical insurance deductions	9,338	61,943
Net amount		99,057

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, $9,660; Medicare tax, $2,415; state unemployment tax, $760; federal unemployment tax, $250.
Dec. 16	Issued Check No. 424 to Jay Bank for $53,935, in payment of $19,320 of social security tax, $4,830 of Medicare tax, and $29,785 of employees' federal income tax due.
Dec. 19	Issued Check No. 429 to Sims-Walker Insurance Company for $56,000, 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	$85,000
Officers	58,000
Office	14,000	157,000
Deductions:
Social security tax	9,420
Medicare tax	2,355
Federal income tax withheld	28,731
State income tax withheld	7,065
Savings bond deductions	3,500	51,071
Net amount		105,929

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, $9,420; Medicare tax, $2,355; state unemployment tax, $380; federal unemployment tax, $125.
Dec. 27	Issued Check No. 543 for $43,290 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 $85,000 to the employee pension plan. The annual pension cost is $111,000. (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 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
Dec. 2	Accounts Payable	fill in the blank 2	fill in the blank 3
	Cash	fill in the blank 5	fill in the blank 6
Dec. 2	Social Security Tax Payable	fill in the blank 8	fill in the blank 9
	Medicare Tax Payable	fill in the blank 11	fill in the blank 12
	Federal Unemployment Tax Payable	fill in the blank 14	fill in the blank 15
	Cash	fill in the blank 17	fill in the blank 18
Dec. 13		fill in the blank 20	fill in the blank 21
		fill in the blank 23	fill in the blank 24
		fill in the blank 26	fill in the blank 27
		fill in the blank 29	fill in the blank 30
		fill in the blank 32	fill in the blank 33
		fill in the blank 35	fill in the blank 36
		fill in the blank 38	fill in the blank 39
		fill in the blank 41	fill in the blank 42
		fill in the blank 44	fill in the blank 45
		fill in the blank 47	fill in the blank 48
Dec. 13		fill in the blank 50	fill in the blank 51
		fill in the blank 53	fill in the blank 54
Dec. 13		fill in the blank 56	fill in the blank 57
		fill in the blank 59	fill in the blank 60
		fill in the blank 62	fill in the blank 63
		fill in the blank 65	fill in the blank 66
		fill in the blank 68	fill in the blank 69
Dec. 16		fill in the blank 71	fill in the blank 72
		fill in the blank 74	fill in the blank 75
		fill in the blank 77	fill in the blank 78
		fill in the blank 80	fill in the blank 81
Dec. 19		fill in the blank 83	fill in the blank 84
		fill in the blank 86	fill in the blank 87
Dec. 27		fill in the blank 89	fill in the blank 90
		fill in the blank 92	fill in the blank 93
		fill in the blank 95	fill in the blank 96
		fill in the blank 98	fill in the blank 99
		fill in the blank 101	fill in the blank 102
		fill in the blank 104	fill in the blank 105
		fill in the blank 107	fill in the blank 108
		fill in the blank 110	fill in the blank 111
		fill in the blank 113	fill in the blank 114
Dec. 27		fill in the blank 116	fill in the blank 117
		fill in the blank 119	fill in the blank 120
Dec. 27		fill in the blank 122	fill in the blank 123
		fill in the blank 125	fill in the blank 126
		fill in the blank 128	fill in the blank 129
		fill in the blank 131	fill in the blank 132
		fill in the blank 134	fill in the blank 135
Dec. 27		fill in the blank 137	fill in the blank 138
		fill in the blank 140	fill in the blank 141
Dec. 31		fill in the blank 143	fill in the blank 144
		fill in the blank 146	fill in the blank 147
Dec. 31		fill in the blank 149	fill in the blank 150
		fill in the blank 152	fill in the blank 153
		fill in the blank 155	fill in the blank 156

2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $8,500; officers salaries, $5,800; office salaries, $1,400. 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
Dec. 31		fill in the blank 158	fill in the blank 159
		fill in the blank 161	fill in the blank 162
		fill in the blank 164	fill in the blank 165
		fill in the blank 167	fill in the blank 168

2b. Journalize the following adjusting entry on December 31: Vacation pay, $29,700.

Date	Account	Debit	Credit
Dec. 31		fill in the blank 170	fill in the blank 171
		fill in the blank 173	fill in the blank 174