The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year. Account Name Balance Account No. 211 Salaries Payable Social Security Tax Payable Medicare Tax Payable $9,273 2,318 15,455 13,909 Employees Federal Income Tax Payable Employees State Income Tax Payable State Unemployment Tax Payable 1,400 Federal Unemployment Tax Payable 500 $3,400 U.S. Saving Bond Deductions Payable Medical Insurance Payable 27,000 950,000 Operations Salaries Expense Officers Salaries Expense 512 519 Office Salaries Expense Payroll Tax Expense 600,000 150,000 137,951 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 $3,400 to Jay Bank to purchase U.S. savings bonds for employees. 2 Issued Check No. 411 to Jay Bank for $27,046 in payment of $9,273 of social security tax, $2,318 of Medicare tax, and $15,455 of employees' federal income tax due. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 13 Dec. 2 Issued Check No. 410 for $3,400 to Jay Bank to purchase U.S. savings bonds for employees. 2 Issued Check No. 411 to Jay Bank for $27,046 in payment of $9,273 of social security tax, $2,318 of Medicare tax, and $15,455 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 $43,200 Officers 27,200 Office 6,800 $77,200 Deductions: Social security tax $ 4,632 Medicare tax 1,158 Federal income tax withheld 15,440 State income tax withheld 3,474 Savings bond deductions 1,700 Medical insurance deductions 4,500 30,904 Net amount $46,296 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, 54,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125. Issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 of employees' federal income tax due. Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in payment of the semiannual 16 19 13 13 16 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, $4,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125. issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 of employees' federal income tax due. Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in payment of the semiannual premium on the group medical insurance policy. 19 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 $42,800 Officers 28,000 Office 7,000 $77,800 Deductions: Social security tax $ 4,668 Medicare tax 1,167 Federal income tax withheld 15,404 State income tax withheld 3,501 Savings bond deductions 1,700 26,440 Net amount $51,360 13 13 16 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, $4,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125. issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 of employees' federal income tax due. Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in payment of the semiannual premium on the group medical insurance policy. 19 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 $42,800 Officers 28,000 Office 7,000 $77,800 Deductions: Social security tax $ 4,668 Medicare tax 1,167 Federal income tax withheld 15,404 State income tax withheld 3,501 Savings bond deductions 1,700 26,440 Net amount $51,360 Deductions: Social security tax $ 4,668 Medicare tax 1,167 Federal income tax withheld 15,404 State income tax withheld 3,501 Savings bond deductions 1,700 26.440 Net amount $51,360 27 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, $4,668; Medicare tax, S1,167, state unemployment tax, $225, federal unemployment tax, $75. Issued Check No. 543 for $20,884 to State Department of Revenue in payment of employees' state income tax due on December 31. Issued Check No. 545 to Jay Bank for $3,400 to purchase U.S. savings bonds for employees. Paid $45,000 to the employee pension plan. The annual pension cost is $60,000. (Record both the payment and unfunded pension liability.) 31 31 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, $8,560, officers salaries, $5,600; office salaries, $1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, $15,000. REVENUE 410 Sales ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 610 Interest Revenue 115 Inventory 116 Supplies EXPENSES 510 Cost of Goods Sold 511 Officers Salaries Expense 512 Office Salaries Expense 513 Operations Salaries Expense 519 Payroll Tax Expense 118 Prepaid Insurance 120 Land 524 Depreciation Expense-Building 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation Office Equipment 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 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 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 216 State Unemployment Tax Payable 217 Federal Unemployment Tax Payable 540 Miscellaneous Expense 710 Interest Expense 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 214 Employees Federal Income Tax Payable 215 Employees State Income Tax Payable 537 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 216 State Unemployment Tax Payable 217 Federal Unemployment Tax Payable 710 Interest Expense 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 Dec. 2 Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Cash Dec. 13 Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees Federal Income Tax Payable U.S. Saving Bond Deductions Payable Medical Insurance Payable Salaries Payable Dec 13 Salaries Payable Cash Dec. 13 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Dec. 16 Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Cash Dec. 16. Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Cash Dec. 19 Medical Insurance Payable Cash Medical Insurance Payable Medical Insurance Payable Points: 38.71 / 65 How does grading work? PAGE 11 JOURNAL Score: 182/283 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY DATE Dec. 27 DESCRIPTION Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable U.S. Saving Bond Deductions Payable Salaries Payable Dec. 27 Payroll Tax Expense Dec. 27 Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable U.S. Saving Bond Deductions Payable Salaries Payable Dec. 27 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Dec. 27 Employees State Income Tax Payable Cash Dec. 31 U.S. Saving Bond Deductions Payable Cash Dec. 31 Unfunded Pension Liability Cash Pension Expense Dec. 31 Pension Expense Cash Dec. 31 Pension Expense Cash Points: 33.44 / 52 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, $8,560, officers salaries, $5,600, office salaries, $1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay $15,000. How does grading work? PAGE 12 JOURNAL Score: 70/75 ACCOUNTING EQUATION DATE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY DESCRIPTION Adjusting Entries Operations Salaries Expense Officers Salaries Expense 8,560.00 5,600.00 1.400.00 Office Salaries Expense Salaries Payable 15,560.00 15,000.00 Vacation Pay Expense Vacation Pay Payable 15,000.00