The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year. Balance Account No. 211 212 $9,280 213 214 2,320 15,460 13,908 215 216 1,320 Account Name Salaries Payable Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Bond Deductions Payable Medical Insurance Payable Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Payroll Tax Expense 217 218 219 550 $3,800 19,800 960,000 600,000 150,000 411 511 512 519 137,951 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December On page 10 of the journal: Dec. 2 2 Issued Check No. 410 for $3,800 to Jay Bank to purchase U.S. savings bonds for employees. Issued Check No. 411 to Jay Bank for $27,060 in payment of $9,280 of social security tax, $2,320 of Medicare tax, and $15,460 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 $41,000 Officers 27,600 Office 6,400 $75,000 Deductions: $ 4,500 Social security tax Medicare tax 1,125 Federal income tax withheld 15,000 State income tax withheld 3,375 Savings bond deductions 1,900 Medical insurance deductions 3,300 29,200 Net amount $45,800 13 13 Issued Check No.420 in payment of the net amount of the biweekly payroll. Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, S4,500; Medicare tax, S1,125, state unemployment tax, 5330; federal unemployment tax, S115. 16 Issued Check No. 424 to Jay Bank for $26,250, in payment of $9,000 of social security tax, 52,250 of Medicare tax, and $15,000 of employees' federal income tax due. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $23,100 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 $40,600 Officers 28,400 Office 6,600 $75,600 Deductions: Social security tax $ 4,536 Medicare tax 1,134 Federal income tax withheld 14,964 3,402 State income tax withheld Savings bond deductions 1,900 25,936 27 27 Issued Check No. 541 in payment of the net amount of the biweekly payroll. Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, 54,536; Medicare tax, S1,134; state unemployment tax, 5230; federal unemployment tax, $65. 27 Issued Check No. 543 for $20,685 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 $3,800 to purchase U.S. savings bonds for employees. 31 Paid $51,000 to the employee pension plan. The annual pension cost is $68,000. (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, $8,540, officers salaries, $5,640, office salaries, $1,390. The payroll taxes are immaterial and are not accrued b. Vacation pay $14.700. Chart of Accounts CHART OF ACCOUNTS Garcon Co. General Ledger REVENUE 410 Sales 610 Interest Revenue Chart of Accounts 210 Accounts Payable 211 San Payable 212 Social Security Tax Payable 213 Medicare Tax Payable 214 Employees for income Tax Payab 215 Employees She income Tax Payable 216 State Unemployment Tax Payatile 217 Federal Unemployment Tax Payable 210 Bond Douctions Patie 219 Medical insurance Payable 220 interest Payable 221 Notes Payable 226 Van PP 227 Uhed Pension 228 Product Warranty 532 Decreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 538 Vacation PayExpense 337 Pensionense 538 Ch Short and Over 530 Product Warranty Expense 540 Miscellaneous Expense 710 interest in ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 11) Notes Recevable 115 Inventory 118 Supplies 118 Prepaid insurance 120 Land 12) Bulong 124 Accumulated Depreciation Bulding 125 Once Equipment 128 Accumulated Depreciation of Equipment EXPENSES 510 Cost of Goods Sold 511 Oficer Salaries Expense 512 Ofice Sales Expense 51) Operations Sales Expense 519 Payroll Tax Expense 524 Depreciation pense-Building 525 Delvery tense 526 Repairs Expense 520 Seling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment EQUITY 310 Common Stock 31 Rends 312 Dividende 313 income Summary LIABILITIES 210 Accounts Payable 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 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 8 9 10 11 12 13 14 15 16 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) A Salaries accrued operations salaries, $8,570, officers salaries $5,610 office salaries, $1,380. The payroll taxes are immaterial and are not accrued B. Vacation pay $15,400 PAGE 12 JOURNAL DATE POST. REF. DEBIT CREDIT DESCRIPTION Adjusting Entries 2 3 4 $ 6 7