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	$12,084
213	Medicare Tax Payable	3,180
214	Employees Federal Income Tax Payable	19,610
215	Employees State Income Tax Payable	19,080
216	State Unemployment Tax Payable	2,014
217	Federal Unemployment Tax Payable	636
218	Bond Deductions Payable	5,000
219	Medical Insurance Payable	36,900
411	Operations Salaries Expense	1,284,000
511	Officers Salaries Expense	837,000
512	Office Salaries Expense	213,000
519	Payroll Tax Expense	182,320

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 $ 34,874 in payment of $12,084 of social security tax, $3,180 of Medicare tax, and $19,610 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	$58,000
Officers	38,000
Office	10,000	106,000
Deductions:
Social security tax	6,360
Medicare tax	1,590
Federal income tax withheld	19,610
State income tax withheld	4,770
Savings bond deductions	2,500
Medical insurance deductions	6,148	40,978
Net amount		65,022

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, $6,360; Medicare tax, $1,590; state unemployment tax, $500; federal unemployment tax, $170.
Dec. 16	Issued Check No. 424 to Jay Bank for $ 35,510, in payment of $12,720 of social security tax, $3,180 of Medicare tax, and $19,610 of employees' federal income tax due.
Dec. 19	Issued Check No. 429 to Sims-Walker Insurance Company for $ 36,900, 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	$56,000
Officers	38,000
Office	9,000	103,000
Deductions:
Social security tax	6,180
Medicare tax	1,545
Federal income tax withheld	18,849
State income tax withheld	4,635
Savings bond deductions	2,500	33,709
Net amount		69,291

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, $6,180; Medicare tax, $1,545; state unemployment tax, $250; federal unemployment tax, $85.
Dec. 27	Issued Check No. 543 for $ 28,485 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 $56,000 to the employee pension plan. The annual pension cost is $73,000. (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.