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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: Account No. Account Name
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:
Account No. | Account Name | Balance |
211 | Salaries Payable | |
212 | Social Security Tax Payable | $9,280 |
213 | Medicare Tax Payable | 2,312 |
214 | Employees Federal Income Tax Payable | 15,435 |
215 | Employees State Income Tax Payable | 13,906 |
216 | State Unemployment Tax Payable | 1,450 |
217 | Federal Unemployment Tax Payable | 440 |
218 | Bond Deductions Payable | $3,600 |
219 | Medical Insurance Payable | 35,400 |
411 | Operations Salaries Expense | 920,000 |
511 | Officers Salaries Expense | 630,000 |
512 | Office Salaries Expense | 150,000 |
519 | Payroll Tax Expense | 137,351 |
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 $3,600 to Jay Bank to purchase U.S. savings bonds for employees. |
2 | Issued Check No. 411 to Jay Bank for $27,027 in payment of $9,280 of social security tax, $2,312 of Medicare tax, and $15,435 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 | $43,800 | |
Officers | 27,000 | |
Office | 7,000 | $77,800 |
Deductions: | ||
Social security tax | $ 4,668 | |
Medicare tax | 1,167 | |
Federal income tax withheld | 15,560 | |
State income tax withheld | 3,501 | |
Savings bond deductions | 1,800 | |
Medical insurance deductions | 5,900 | 32,596 |
Net amount | $45,204 |
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, $4,668; Medicare tax, $1,167; state unemployment tax, $310; federal unemployment tax, $115. | |
16 | Issued Check No. 424 to Jay Bank for $27,230, in payment of $9,336 of social security tax, $2,334 of Medicare tax, and $15,560 of employees federal income tax due. | |
19 | Issued Check No. 429 to Sims-Walker Insurance Company for $41,300 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 | $43,400 | |
Officers | 27,800 | |
Office | 7,200 | $78,400 |
Deductions: | ||
Social security tax | $ 4,704 | |
Medicare tax | 1,176 | |
Federal income tax withheld | 15,524 | |
State income tax withheld | 3,528 | |
Savings bond deductions | 1,800 | 26,732 |
Net amount | $51,668 |
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, $4,704; Medicare tax, $1,176; state unemployment tax, $200; federal unemployment tax, $80. | |
27 | Issued Check No. 543 for $20,935 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 $3,600 to purchase U.S. savings bonds for employees. | |
31 | Paid $54,000 to the employee pension plan. The annual pension cost is $72,000. (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):
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