The following accounts, with the talances 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 213 Medicare Tax Payable 214 Employees Federal Income Tax Payable15,455 215 Employees State Income Tax Payable 216 State Unemployment Tax Payable 217 Federal Unemployment Tax Payable 218 Bond Deductions Payable 219 Medical Insurance Payable 11 Operations Salaries Expense 511 Officers Salaries Expense 512 Office Salanies Expense 9,273 2.318 13,909 1,400 500 5 3,400 27,000 50,000 00,000 150,000 137 951 519Payroll Tax Expense The following transactions relating to payroll, payroll deductions, and payroltaxes 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 13 Journalized the entry to record the biweekly payroll. A summary of the payroll record tollows Salary distribution: $43,200 27,200 6,800 $77.200 Operations Officers Office Deductions $4,632 Social security tax Salary distribution: $43,200 27 200 6,800 $77,200 Officers Office Deductions Social security tax Medicare tax Federal incorne tax withheld 15,440 State income tax withheld 3,474 Savings bond deductions 1,700 Medical insurance deductions 4,500 Net amount $ 4,632 1,158 30,904 $46.296 13 Issued Check No. 420 in payment of the net amount of the biweeky payroll 13 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 16 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. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in paymont of the semiannual premium on the group medical insurance policy Dec. 27 Journalized the entry to record the biweokty payroll. A summary of the payroll record follows Salary distribution: $42,800 28,000 7,000 $77,800 Officers Deductions Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Net amount $4,668 ,167 15,404 3,501 1,700 26,440 $51,360 27 Issued Check No. 541 in payment of the net amount of the biweekly payroll 27 Journalized the entry to record payrol taxes on employees' earnings of December 27 social security tax, $4,668, Medicare tax, $1,167, stale unemployment tax, $225, federal unemployment tax, s75 Issued Check No. 543 for $20,884 to State Department of Revenue in payment of employees' state income tax due on December 31 27 31 Issued Check No. 545 to Jay Bank for $3,400 to purchase U.S savings bonds for employees 31 Paid $45,000 to the employee pension plan. The annual pension cost is $60,000 (Record both the payment and unfunded pension liability.) Required: 1. Journalize the transactions on pages t0 and 11 of the journal Refer to the Chart of Accounts for exact wording of account toes 2 On page 12 of the jounal journalize the following adjusting entries on December 31 (refer to the Chart of Accounts for exact wording of account toes a Salaries accrued operations salaries, $8,560 officers salanes, 5 600 office salaries, $1,400 The payroli taxes are immatenal and are not accrued b Vacation pay, $15,000
