Question
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: PLEASE COMPLETE ENTIRE QUESTION!
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: PLEASE COMPLETE ENTIRE QUESTION!
Account No. | Account Name | Balance |
---|---|---|
211 | Salaries Payable | |
212 | Social Security Tax Payable | $9,273 |
213 | Medicare Tax Payable | 2,318 |
214 | Employees Federal Income Tax Payable | 15,455 |
215 | Employees State Income Tax Payable | 13,909 |
216 | State Unemployment Tax Payable | 1,400 |
217 | Federal Unemployment Tax Payable | 500 |
218 | Bond Deductions Payable | $ 3,400 |
219 | Medical Insurance Payable | 27,000 |
411 | Operations Salaries Expense | 950,000 |
511 | Officers Salaries Expense | 600,000 |
512 | Office Salaries Expense | 150,000 |
519 | Payroll Tax Expense | 137,951 |
The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
On page 10 of the journal:
Dec. | 2 | Issued Check No. 410 for $3,400 to Jay Bank to purchase U.S. savings bonds for employees. |
2 | Issued Check No. 411 to Jay Bank for $27,046 in payment of $9,273 of social security tax, $2,318 of Medicare tax, and $15,455 of employees federal income tax due. | |
13 | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: |
Salary distribution: | ||
Operations | $43,200 | |
Officers | 27,200 | |
Office | 6,800 | $77,200 |
Deductions: | ||
Social security tax | $ 4,632 | |
Medicare tax | 1,158 | |
Federal income tax withheld | 15,440 | |
State income tax withheld | 3,474 | |
Savings bond deductions | 1,700 | |
Medical insurance deductions | 4,500 | 30,904 |
Net amount | $46,296 |
13 | Issued Check No. 420 in payment of the net amount of the biweekly payroll. | |
13 | Journalized the entry to record payroll taxes on employees earnings of December 13: social security tax, $4,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125. | |
16 | Issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 of employees federal income tax due. | |
19 | Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in payment of the semiannual premium on the group medical insurance policy. |
On page 11 of the journal:
Dec. | 27 | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: |
Salary distribution: | ||
Operations | $42,800 | |
Officers | 28,000 | |
Office | 7,000 | $77,800 |
Deductions: | ||
Social security tax | $ 4,668 | |
Medicare tax | 1,167 | |
Federal income tax withheld | 15,404 | |
State income tax withheld | 3,501 | |
Savings bond deductions | 1,700 | 26,440 |
Net amount | $51,360 |
27 | Issued Check No. 541 in payment of the net amount of the biweekly payroll. | |
27 | Journalized the entry to record payroll taxes on employees earnings of December 27: social security tax, $4,668; Medicare tax, $1,167; state unemployment tax, $225; federal unemployment tax, $75. | |
27 | Issued Check No. 543 for $20,884 to State Department of Revenue in payment of employees state income tax due on December 31. | |
31 | Issued Check No. 545 to Jay Bank for $3,400 to purchase U.S. savings bonds for employees. | |
31 | Paid $45,000 to the employee pension plan. The annual pension cost is $60,000. (Record both the payment and unfunded pension liability.) |
Required: | |||||
1. | Journalize the transactions on pages 10 and 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles. | ||||
2. | On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the Chart of Accounts for exact wording of account titles):
|
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Garcon Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Journal
1. Journalize the transactions on pages 10 and 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access pages 11 and 12 of the journal.
PAGE 10
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 |
| ||||
2 |
| ||||
3 |
| ||||
4 |
| ||||
5 |
| ||||
6 |
| ||||
7 |
| ||||
8 |
| ||||
9 |
| ||||
10 |
| ||||
11 |
| ||||
12 |
| ||||
13 |
| ||||
14 |
| ||||
15 |
| ||||
16 |
| ||||
17 |
| ||||
18 |
| ||||
19 |
| ||||
20 |
| ||||
21 |
| ||||
22 |
| ||||
23 |
| ||||
24 |
| ||||
25 |
| ||||
26 |
| ||||
27 |
| ||||
28 |
| ||||
29 |
|
PAGE 11
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 |
| ||||
2 |
| ||||
3 |
| ||||
4 |
| ||||
5 |
| ||||
6 |
| ||||
7 |
| ||||
8 |
| ||||
9 |
| ||||
10 |
| ||||
11 |
| ||||
12 |
| ||||
13 |
| ||||
14 |
| ||||
15 |
| ||||
16 |
| ||||
17 |
| ||||
18 |
| ||||
19 |
| ||||
20 |
| ||||
21 |
| ||||
22 |
| ||||
23 |
|
2. | On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the Chart of Accounts for exact wording of account titles):
|
PAGE 12
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
---|---|---|---|---|---|
1 |
| Adjusting Entries |
|
|
|
2 |
| ||||
3 |
| ||||
4 |
| ||||
5 |
| ||||
6 |
| ||||
7 |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started