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. 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:

Dec. 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, $4,632; 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 payment of the semiannual premium on the group medical insurance policy.
27. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

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, $4,668; Medicare tax, $1,167; state unemployment tax, $225; federal unemployment tax, $75.
27. Issued Check No. 543 for $20,884 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 $3,400 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.)

Instructions
1. Journalize the transactions.
2. Journalize the following adjusting entries on December 31:
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.

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211 Salaries Payable 212 Social Security Tax Payable 213 Medicare Tax Payable 214 Employees Federal Income Tax Payable 15,455 511 Officers Salaries Expene 215 Employees State Income Tax Payable 13,909 512 Office Salaries Expense 216 State Unemployment Tax Payable 1,400 519 Payroll Tax Expense 217 Federal Unemployment Tax Payable 500 218 Bond Deductions Payable 3,400 9,273 219 Medical Insurance Payable 27,000 2,318 411 Operations Salaries xpnse 950,000 600,000 150,000 137,951 Salary distribution: $43,200 27,200 6,800 77,200 Deductions: Social security tax Federal income tax withheld State income tax withheld Savings bond deductions Medical 4,632 1,158 15,440 3,474 1,700 4,500 insurance deductions 30,904 $46,296 Net amount Salary distribution: Operations Officers Office $42,800 28,000 7000 $77,800 Deductions: 4,668 1,167 Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions 15,404 3,501 1,700 26,440 $51,360 Net amount