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	U.S. Saving 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):

	a. Salaries accrued: operations salaries, $8,620; officers salaries, $5,640; office salaries, $1,440. The payroll taxes are immaterial and are not accrued.
	b. Vacation pay, $14,600.