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: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2 Issued Check No. 410 for $6,000 to Jay Bank to purchase U.S. savings bonds for employees. Dec. 2 Issued Check No. 411 to Jay Bank for $46,389 in payment of $16,074 of social security tax, $4,230 of Medicare tax, and $26,085 of employees' federal income tax due. Dec. 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. Dec. 13 Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, $8,460; Medicare tax, \$2,115; state unemployment tax, $670; federal unemployment tax, \$220. Dec. 16 Issued Check No. 424 to Jay Bank for $47,235, in payment of $16,920 of social security tax, $4,230 of Medicare tax, and $26,085 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $49,100, in payment of the semiannual premium on the group medical insurance policy. Dec. 27 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 27 Issued Check No. 541 in payment of the net amount of the biweekly payroll. Dec. 27. Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, $8,280; Medicare tax, $2,070; state unemployment tax, $335; federal unemployment tax, $110. Dec. 27 Issued Check No. 543 for $37,935 to State Department of Revenue in payment of employees' state income tax due on December 31. Dec. 31 Issued Check No. 545 to Jay Bank for $6,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $74,000 to the employee pension plan. The annual pension cost is $96,000. (Record both the payment and unfunded pension liability.) \begin{tabular}{|c|c|c|c|c|} \hline Date & Account & Debit & Credit & \\ \hline Dec. 2 & Medical Insurance Payable & 6,000 & & \\ \hline & Cash & & 6,000 & \\ \hline Dec. 2 & Social Security Tax Payable & 16,074 & & \\ \hline & Medicare Tax Payable & 4,230 & & \\ \hline & Employees Federal Income Tax Payable & 26,085 & & \\ \hline & Cash & & 46,389 & \\ \hline Dec. 13 & Operations Salaries Expense & & & \\ \hline & Officers Salaries Expense & & & \\ \hline & Office Salaries Expense & & & \\ \hline & Social Security Tax Payable & & & \\ \hline & Medicare Tax Payable & & & \\ \hline & Employees Federal Income Tax Payable & & & \\ \hline & Employees State Income Tax Payable & & & \\ \hline & Payroll Tax Expense x & & & \\ \hline & Medical Insurance Expense x & & & \\ \hline & & & & \\ \hline Dec. 13 & & & & \\ \hline & & & & \\ \hline \end{tabular} Dec. 27 Dec. 27 Dec. 31 Dec. 31 \begin{tabular}{|cccc|} \hline Date & Account & Debit & \\ \hline Dec. 31 & - & & \\ & - & \\ & - & \\ & & & \\ & & \\ \hline \end{tabular} b. Journalize the following adjusting entry on December 31 : Vacation pay, $25,900