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The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year: Account No. Account Name
The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year:
Account No. | Account Name | Balance |
---|---|---|
211 | Salaries Payable | |
212 | Social Security Tax Payable | $2,913 |
213 | Medicare Tax Payable | 728 |
214 | Employees Federal Income Tax Payable | 4,490 |
215 | Employees State Income Tax Payable | 4,078 |
216 | State Unemployment Tax Payable | 1,260 |
217 | Federal Unemployment Tax Payable | 360 |
218 | Bond Deductions Payable | 2,300 |
219 | Medical Insurance Payable | 2,520 |
511 | Sales Salaries Expense | 700,000 |
512 | Officers Salaries Expense | 340,000 |
513 | Office Salaries Expense | 125,000 |
519 | Payroll Tax Expense | 59,491 |
The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
On page 11 of the journal:
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: |
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 |
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. |
On page 11 of the journal:
26 | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: |
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 |
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 on pages 11 and 12 of the journal. Refer to the Chart of Accounts for exact wording of account titles. | ||||
2. | On page 13 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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