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	$18,582
213	Medicare Tax Payable	4,890
214	Employees Federal Income Tax Payable	30,155
215	Employees State Income Tax Payable	29,340
216	State Unemployment Tax Payable	3,097
217	Federal Unemployment Tax Payable	978
218	U.S. Saving Bond Deductions Payable	7,000
219	Medical Insurance Payable	56,700
411	Operations Salaries Expense	1,974,000
511	Officers Salaries Expense	1,288,000
512	Office Salaries Expense	328,000
519	Payroll Tax Expense	280,360

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 $53,627 in payment of $18,582 of social security tax, $4,890 of Medicare tax, and $30,155 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	$89,000
Officers	59,000
Office	15,000	163,000
Deductions:
Social security tax	9,780
Medicare tax	2,445
Federal income tax withheld	30,155
State income tax withheld	7,335
Savings bond deductions	3,500
Medical insurance deductions	9,454	62,669
Net amount		100,331

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, $9,780; Medicare tax, $2,445; state unemployment tax, $770; federal unemployment tax, $250.
Dec. 16	Issued Check No. 424 to Jay Bank for $54,605, in payment of $19,560 of social security tax, $4,890 of Medicare tax, and $30,155 of employees' federal income tax due.
Dec. 19	Issued Check No. 429 to Sims-Walker Insurance Company for $56,700, 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	$86,000
Officers	59,000
Office	14,000	159,000
Deductions:
Social security tax	9,540
Medicare tax	2,385
Federal income tax withheld	29,097
State income tax withheld	7,155
Savings bond deductions	3,500	51,677
Net amount		107,323

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, $9,540; Medicare tax, $2,385; state unemployment tax, $385; federal unemployment tax, $125.
Dec. 27	Issued Check No. 543 for $43,830 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 $86,000 to the employee pension plan. The annual pension cost is $112,000. (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.

1. Date	Account	Debit	Credit
   Dec. 2	Medical Insurance Payable
   	Cash
   Dec. 2
   Dec. 13
   Dec. 13
   Dec. 13
   Dec. 16
   Dec. 19
   Dec. 27
   Dec. 27
   Dec. 27
   Dec. 27
   Dec. 31
   Dec. 31

   2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $8,600; officers salaries, $5,900; 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

   2b. Journalize the following adjusting entry on December 31: Vacation pay, $30,100.

   Date	Account	Debit	Credit
   Dec. 31