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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):
A. Salaries accrued: operations salaries, $8,560; officers salaries, $5,600; office salaries, $1,400. The payroll taxes are immaterial and are not accrued.
B. Vacation pay, $15,000.

Chart of Accounts

CHART OF ACCOUNTS
Garcon Co.
General Ledger
ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Merchandise Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
211 Salaries Payable
212 Social Security Tax Payable
213 Medicare Tax Payable
214 Employees Federal Income Tax Payable
215 Employees State Income Tax Payable
216 State Unemployment Tax Payable
217 Federal Unemployment Tax Payable
218 Bond Deductions Payable
219 Medical Insurance Payable
220 Interest Payable
221 Notes Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
228 Product Warranty Payable
EQUITY
310 Owner, Capital
311 Owner, Drawing
312 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
411 Operations Salaries Expense
412 Cost of Merchandise Sold
511 Officers Salaries Expense
512 Office Salaries Expense
519 Payroll Tax Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Supplies Expense
536 Vacation Pay Expense
537 Pension Expense
538 Cash Short and Over
539 Product Warranty Expense
540 Miscellaneous Expense
710 Interest Expense

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

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PAGE 11

JOURNAL

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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):
A. Salaries accrued: operations salaries, $8,560; officers salaries, $5,600; office salaries, $1,400. The payroll taxes are immaterial and are not accrued.
B. Vacation pay, $15,000.

PAGE 12

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

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Adjusting Entries

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