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1. Payroll Accounts and Year-End Entries

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

   211	Salaries Payable
   212	Social Security Tax Payable	$18,126
   213	Medicare Tax Payable	4,770
   214	Employees Federal Income Tax Payable	29,415
   215	Employees State Income Tax Payable	28,620
   216	State Unemployment Tax Payable	3,021
   217	Federal Unemployment Tax Payable	954
   218	Retirement Savings Deductions Payable	7,000
   219	Medical Insurance Payable	55,300
   411	Operations Salaries Expense	1,925,000
   511	Officers Salaries Expense	1,256,000
   512	Office Salaries Expense	320,000
   519	Payroll Tax Expense	273,480

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

   Dec. 2	Issued Check No. 410 for $7,000 to Jay Bank to invest in a retirement savings account for employees.
   2	Issued Check No. 411 to Jay Bank for $52,311 in payment of $18,126 of social security tax, $4,770 of Medicare tax, and $29,415 of employees' federal income tax due.
   13	Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:
   	Salary distribution: Operations $89,000 Officers 56,000 Office 14,000 $159,000 Deductions: Social security tax $9,540 Medicare tax 2,385 Federal income tax withheld 29,415 State income tax withheld 7,155 Retirement savings deductions 3,500 Medical insurance deductions 9,222 61,217 Net amount $97,783
   13	Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account.
   13	Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, $9,540; Medicare tax, $2,385; state unemployment tax, $750; federal unemployment tax, $250.
   16	Issued Check No. 424 to Jay Bank for $53,265, in payment of $19,080 of social security tax, $4,770 of Medicare tax, and $29,415 of employees' federal income tax due.
   19	Issued Check No. 429 to Sims-Walker Insurance Company for $55,300, 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:
   	Salary distribution: Operations $86,000 Officers 56,000 Office 14,000 $156,000 Deductions: Social security tax $9,360 Medicare tax 2,340 Federal income tax withheld 28,548 State income tax withheld 7,020 Retirement savings deductions 3,500 50,768 Net amount $105,232
   27	Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account.
   27	Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, $9,360; Medicare tax, $2,340; state unemployment tax, $375; federal unemployment tax, $125.
   27	Issued Check No. 543 for $42,795 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 $7,000 invest in a retirement savings account for employees.
   31	Paid $84,000 to the employee pension plan. The annual pension cost is $109,000. (Record both the payment and unfunded pension liability.)

   Required:

   1. Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. For December 16th transactions, (a.) record the payroll and (b.) payment of salaries. For December 30th transactions, (a.) record the payroll, (b.) payment of salaries, (c.) record the taxes, and (d.) payment of taxes.

   Date	Account	Debit	Credit
   2	Retirement Savings Deductions Payable
   	Cash
   2	Employees Federal Income Tax Expense
   	Medicare Tax Payable
   13 (a.)	Salaries Payable
   	Social Security Tax Payable
   13 (b.)	Salaries Payable
   	Cash
   13-Taxes
   16-Taxes
   19-Ins.
   27 (a.)
   27 (b.)
   27 (c.)
   27 (d.)
   31-Bonds
   31

   2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $8,600; officers salaries, $5,600; office salaries, $1,400. The payroll taxes are immaterial and are not accrued. For a compound transaction, if an amount box does not require an entry, leave it blank.

   Date	Account	Debit	Credit
   31

   2b. Journalize the following adjusting entry on December 31: Vacation pay, $29,400.

   Date	Account	Debit	Credit
   31

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