211 Salaries Payable 218 Bond Deductions Payable $ 3,400 212 Social Socurity Tax Payable $ 9,273 219 Medical Insurance Payable 27,000 213 Medicare Tax Payable 2,318 411 Operations Salaries Expense 950,c00 214 Employees Federal Income Tax Payable 15,455 511 Officers Salaries Expense 600.000 215 Employees State Income Tax Payable 13,909 512 Office Salaries Expense 150,000 216 State Unemployment Tax Payable 1,400 519 Payroll Tax Experse 137,951 217 Federal Unemployment Tax Payable 500 Salary distribution: Operations Officers $43,200 27,200 Office 6,800 $7,200 Deductions: $ 4,632 Social security tax Medicare tax 1,158 Federal income tax withheld 15,440 State income tax withheld 3,474 Savings bond deductions 1,700 Medical insurance deductions 4,500 (30,904) $ 46,296 Net amount
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 dur ing December:
Dec 2. Issued Chedc No. 410 for $3,400 to Jay Bank to purchase U5. savings bonds for employees.
2. Issued Check Na 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.
Dec. 13.
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' eamings of December 13: social security tax, $4,632; Medicare tax, $1,158; state
16. Issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax. $2316 of Medicare tax. and $15,440 of employees'federal income tax due.
19. Issued Check No. 429 to 5ims-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' eamings of December 27: social security tax, $4,668; Medicare tax, $1,167; state unemployment tax, $22S; 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. S4S 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
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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