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	$15,276
213	Medicare Tax Payable	4,020
214	Employees Federal Income Tax Payable	24,790
215	Employees State Income Tax Payable	24,120
216	State Unemployment Tax Payable	2,546
217	Federal Unemployment Tax Payable	804
218	Bond Deductions Payable	6,000
219	Medical Insurance Payable	46,600
411	Operations Salaries Expense	1,623,000
511	Officers Salaries Expense	1,059,000
512	Office Salaries Expense	269,000
519 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 $ 44,086 in payment of $15,276 of social security tax, $4,020 of Medicare tax, and $24,790 of employees' federal income tax due. Dec. 13 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations $75,000 Officers 47,000 Office 12,000 134,000 Deductions: Social security tax 8,040 Medicare tax 2,010 Federal income tax withheld 24,790 State income tax withheld 6,030 Savings bond deductions 3,000 Medical insurance deductions 7,772 51,642 Net amount 82,358 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, $8,040; Medicare tax, $2,010; state unemployment tax, $640; federal unemployment tax, $210. Dec. 16 Issued Check No. 424 to Jay Bank for $ 44,890, in payment of $16,080 of social security tax, $4,020 of Medicare tax, and $24,790 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $ 46,600, 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: Salary distribution: Operations $73,000 Officers 47,000 Office 12,000 132,000 Deductions: Social security tax 7,920 Medicare tax 1,980 Federal income tax withheld 24,156 State income tax withheld 5,940 Savings bond deductions 3,000 42,996 Net amount 89,004 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, $7,920; Medicare tax, $1,980; state unemployment tax, $320; federal unemployment tax, $105. Dec. 27 Issued Check No. 543 for $ 36,090 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 $70,000 to the employee pension plan. The annual pension cost is $91,000. (Record both the payment and unfunded pension liability.) Required: 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. For December 13th transactions, (a.) record the payroll and (b.) payment of salaries. For December 27th transactions, (a.) record the payroll, (b.) payment of salaries, (c.) record the taxes, and (d.) payment of taxes. Date Account Debit Credit Dec. 2 Bond Deductions Payable Cash Dec. 2 Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Cash Dec. 13 (a.) Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable Bond Deductions Payable Medical Insurance Payable Salaries Payable Dec. 13 (b.) Salaries Payable Cash Dec. 13-Taxes Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Dec. 16-Taxes Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Cash Dec. 19-Ins. Medical Insurance Payable Cash Dec. 27 (a.) Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable Bond Deductions Payable Salaries Payable Dec. 27 (b.) Salaries Payable Cash Dec. 27 (c.) Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Dec. 27 (d.) Employees State Income Tax Payable Cash Dec. 31-Bonds Bond Deductions Payable Cash Dec. 31 Pension Expense Cash Unfunded Pension Liability 2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $7,300; officers salaries, $4,700; office salaries, $1,200 . The payroll taxes are immaterial and are not accrued. If an amount box does not require an entry, leave it blank. Date Account Debit Credit Dec. 31 Operations Salaries Expense Officers Salaries Expense Office Salaries Expense Salaries Payable 2b. Journalize the following adjusting entry on December 31: Vacation pay, $24,500. Date Account Debit Credit Dec. 31 Vacation Pay Expense Vacation Pay Payable	Payroll Tax Expense	230,480