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 $9,270 213 Medicare Tax Payable 2,300 214 Employees Federal Income Tax Payable 15,485 215 Employees State Income Tax Payable 13,916 216 State Unemployment Tax Payable 1,310 217 Federal Unemployment Tax Payable 460 218 U S Saving Bond Deductions Payable $3,000 219 Medical Insurance Payable 27,000 411 Operations Salaries Expense 930,000 511 Officers Salaries Expense 630,000 512 Office Salaries Expense 160,000 519 Payroll Tax Expense 136,351 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 $3,000 to Jay Bank to purchase U S savings bonds for employees 2 Issued Check No 411 to Jay Bank for $27,055 in payment of $9,270 of social security tax, $2,300 of Medicare tax, and $15,485 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 $41,400 Officers 26,600 Office 6,600 $74,600 Deductions Social security tax $ 4,476 Medicare tax 1,119 Federal income tax withheld 14,920 State income tax withheld 3,357 Savings bond deductions 1,500 Medical insurance deductions 4,500 29,872 Net amount $44,728 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, $4,476 Medicare tax, $1,119 state unemployment tax, $360 federal unemployment tax, $125 16 Issued Check No 424 to Jay Bank for $26,110, in payment of $8,952 of social security tax, $2,238 of Medicare tax, and $14,920 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 $41,000 Officers 27,400 Office 6,800 $75,200 Deductions Social security tax $ 4,512 Medicare tax 1,128 Federal income tax withheld 14,884 State income tax withheld 3,384 Savings bond deductions 1,500 25,408 Net amount $49,792 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, $4,512 Medicare tax, $1,128 state unemployment tax, $210 federal unemployment tax, $80 27 Issued Check No 543 for $20,657 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 $3,000 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 ) CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 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 U S Saving 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 Common Stock 311 Retained Earnings 312 Dividends 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, $8,530 officers salaries, $5,640 office salaries, $1,350 The payroll taxes are immaterial and are not accrued b Vacation pay, $15,300

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 07, 2024

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	$9,270
213	Medicare Tax Payable	2,300
214	Employees Federal Income Tax Payable	15,485
215	Employees State Income Tax Payable	13,916
216	State Unemployment Tax Payable	1,310
217	Federal Unemployment Tax Payable	460
218	U.S. Saving Bond Deductions Payable	$3,000
219	Medical Insurance Payable	27,000
411	Operations Salaries Expense	930,000
511	Officers Salaries Expense	630,000
512	Office Salaries Expense	160,000
519	Payroll Tax Expense	136,351

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 $3,000 to Jay Bank to purchase U.S. savings bonds for employees.
	2	Issued Check No. 411 to Jay Bank for $27,055 in payment of $9,270 of social security tax, $2,300 of Medicare tax, and $15,485 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	$41,400
Officers	26,600
Office	6,600	$74,600
Deductions:
Social security tax	$ 4,476
Medicare tax	1,119
Federal income tax withheld	14,920
State income tax withheld	3,357
Savings bond deductions	1,500
Medical insurance deductions	4,500	29,872
Net amount		$44,728

	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, $4,476; Medicare tax, $1,119; state unemployment tax, $360; federal unemployment tax, $125.
	16	Issued Check No. 424 to Jay Bank for $26,110, in payment of $8,952 of social security tax, $2,238 of Medicare tax, and $14,920 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.

Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

Salary distribution:
Operations	$41,000
Officers	27,400
Office	6,800	$75,200
Deductions:
Social security tax	$ 4,512
Medicare tax	1,128
Federal income tax withheld	14,884
State income tax withheld	3,384
Savings bond deductions	1,500	25,408
Net amount		$49,792

	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, $4,512; Medicare tax, $1,128; state unemployment tax, $210; federal unemployment tax, $80.
	27	Issued Check No. 543 for $20,657 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 $3,000 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.)

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
111	Accounts Receivable
112	Interest Receivable
113	Notes Receivable
115	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	U.S. Saving 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	Common Stock
311	Retained Earnings
312	Dividends

Required:

Journalize the transactions on pages 10 and 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles.

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, $8,530; officers salaries, $5,640; office salaries, $1,350. The payroll taxes are immaterial and are not accrued.
	b. Vacation pay, $15,300.