The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
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:

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

26. Issued Check No. 840 for the net amount of the biweekly payroll.
Dec. 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.)

Instructions
1. Journalize the transactions.
2. Journalize the following adjusting entries on December 31:
a. Salaries accrued: sales salaries, $4,275; officers’ salaries, $2,175; office salaries, $825.
The payroll taxes are immaterial and are not accrued.
b. Vacation pay,$13,350.

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101 Salaries Payable 102 Social Security Tax Payable 103 Medicare Tax Payable 104 Employees Federal Income Tax Payable 4,490 301 Officers Salaries Expense 105 Employees State Income Tax Payable 4,078 401 Office Salaries Expense 106 State Unemployment Tax Payable ,260 408 Payroll Tax Expense 107 Federal Unemployment Tax Payable 360 108 Bond Deductions Payable 2,300 $2,913 109 Medical Insurance Payable 2,520 700,000 340,000 125,000 59,491 728 201 Sales Salaries Expense Salary distribution: 14,500 7,100 Sales $24,200 Deductions: Social Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Medical insuran 1,452 363 security tax 1,089 1,150 420 8,782 $15,418 ce deductions Net amount Salary distribution: Sales Officers Office $14,250 7,250 2,750 $24,250 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions 1,455 364 4,317 1,091 1,150 8377 15,873 Net amount