Question
The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year: Account Number Account Amount
The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year:
Account Number | Account | Amount |
---|---|---|
101 | Salaries Payable | |
102 | Social Security Tax Payable | $2,913 |
103 | Medicare Tax Payable | 728 |
104 | Employees Federal Income Tax Payable | 4,490 |
105 | Employees State Income Tax Payable | 4,078 |
106 | State Unemployment Tax Payable | 1,260 |
107 | Federal Unemployment Tax Payable | 360 |
108 | U.S. Saving Bond Deductions Payable | 2,300 |
109 | Medical Insurance Payable | 2,520 |
201 | Sales Salaries Expense | 700,000 |
301 | Officers Salaries Expense | 340,000 |
401 | Office Salaries Expense | 125,000 |
408 | Payroll Tax Expense | 59,491 |
The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
Date | Transaction |
---|---|
Dec. 1. | Issued Check No. 815 to Aberderas Insurance Company for $2,520, in payment of the semiannual premium on the group medical insurance policy. |
1. | Issued Check No. 816 to Alvarez Bank for $8,131, in payment for $2,913 of social security tax, $728 of Medicare tax, and $4,490 of employees' federal income tax due. |
2. | Issued Check No. 817 for $2,300 to Alvarez Bank to purchase U.S. savings bonds for employees. |
12. | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: |
Line Item Description | Amount | Amount |
---|---|---|
Salary distribution: | ||
Sales | $14,500 | |
Officers | 7,100 | |
Office | 2,600 | $24,200 |
Deductions: | ||
Social security tax | $1,452 | |
Medicare tax | 363 | |
Federal income tax withheld | 4,308 | |
State income tax withheld | 1,089 | |
Savings bond deductions | 1,150 | |
Medical insurance deductions | 420 | (8,782) |
Net amount | $15,418 |
Date | Transaction |
---|---|
12. | Issued Check No. 822 in payment of the net amount of the biweekly payroll. |
12. | Journalized the entry to record payroll taxes on employees' earnings of December 12: social security tax, $1,452; Medicare tax, $363; state unemployment tax, $315; federal unemployment tax, $90. |
15. | Issued Check No. 830 to Alvarez Bank for $7,938, in payment of $2,904 of social security tax, $726 of Medicare tax, and $4,308 of employees' federal income tax due. |
26. | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: |
Line Item Description | Amount | Amount |
---|---|---|
Salary distribution: | ||
Sales | $14,250 | |
Officers | 7,250 | |
Office | 2,750 | $24,250 |
Deductions: | ||
Social security tax | $1,455 | |
Medicare tax | 364 | |
Federal income tax withheld | 4,317 | |
State income tax withheld | 1,091 | |
Savings bond deductions | 1,150 | (8,377) |
Net amount | $15,873 |
Date | Transaction |
---|---|
26. | Issued Check No. 840 for the net amount of the biweekly payroll. |
26. | Journalized the entry to record payroll taxes on employees' earnings of December 26: social security tax, $1,455; Medicare tax, $364; state unemployment tax, $150; federal unemployment tax, $40. |
30. | Issued Check No. 851 for $6,258 to State Department of Revenue, in payment of employees' state income tax due on December 31. |
30. | Issued Check No. 852 to Alvarez Bank for $2,300 to purchase U.S. savings bonds for employees. |
31. | Paid $55,400 to the employee pension plan. The annual pension cost is $65,500. (Record both the payment and the unfunded pension liability.) |
Required:
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. For December 12th and 26th transactions, (a.) record the payroll and (b.) payment of salaries.
2a. Journalize the following adjusting entry on December 31. Salaries accrued: sales salaries, $4,275; officers salaries, $2,175; office salaries, $825. 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, $13,350. If an amount box does not require an entry, leave it blank.
Date | Account | Debit | Credit |
---|---|---|---|
Dec. 31 | |||
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