The following accounts, with the balances indicated, appear in the ledger of Bonnie's Gifts 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. 728 for $3,000 to First National Bank to purchase U.S. savings bonds for employees.
3. Issued Check No. 729 to First National Bank for $23,181, in payment of $8,032 of social security tax, $2,114 of Medicare tax, and $13,035 of employees' federal income tax due.
14. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

14. Issued Check No. 738 in payment of the net amount of the biweekly payroll.
14. Journalized the entry to record payroll taxes on employees' earnings of December 14: social security tax, $3,931; Medicare tax, $1,053; state unemployment tax, $290; federal unemployment tax, $84.
17. Issued Check No. 744 to First National Bank for $22,464, in payment of $7,862 of social security tax, $2,106 of Medicare tax, and $12,496 of employees' federal income tax due.
18. Issued Check No. 750 to Pico Insurance Company for $24,000, in payment of the semiannual premium on the group medical insurance policy.
28. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

28. Issued Check No. 782 in payment of the net amount of the biweekly payroll.
Dec. 28. Journalized the entry to record payroll taxes on employees' earnings of December 28: social security tax, $3,856; Medicare tax, $1,071; state unemployment tax, $155; federal unemployment tax, $38.
30. Issued Check No. 791 to First National Bank for $3,000 to purchase U.S. savings bonds for employees.
30. Issued Check No. 792 for $19,054 to First National Bank in payment of employees' state income tax due on December 31.
31. Paid $43,000 to the employee pension plan. The annual pension cost is $45,000.
(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, $3,900; officers salaries, $2,600; office salaries, $640. The payroll taxes are immaterial and are not accrued.
b. Vacation pay,$12,650.

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211 Salaries Payable 212 Social Security Tax Payable 213 Medicare Tax Payable 214 Employees Federal Income Tax Payable 13,035 711 Officers Salaries Expense 215 Employees State Income Tax Payable 2,682 712 Office Salaries Expense 216 State Unemployment Tax Payable 217 Federal Unemployment Tax Payable 218 Bond Deductions Payable 3,000 8,032 219 Medical Insurance Payable 24,000 2,114 611 Operations Salaries Expense 850,000 560,000 140,000 121,506 1,400 719 Payroll Tax Expense 400 Salary distribution: Operations Officers Office S38,500 25,500 6,200 $70,200 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Medical insurance deductions 3,931 1,053 12,496 3,159 1,500 4,000 26,139 $44,061 Net amount Salary distribution: Operations Officers Office $39,000 26,000 6,400 571,400 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withhelod Savings bond deductions 3,856 1,071 12,709 3,213 1,500 22,349 $49,051 Net amount