The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:211Salaries Payable—212Social Security Tax Payable$16,302213Medicare Tax Payable4,290214Employees Federal Income Tax Payable26,455215Employees State Income Tax Payable25,740216State Unemployment Tax Payable2,717217Federal Unemployment Tax Payable858218U.S. Saving Bond Deductions Payable6,000219Medical Insurance Payable49,800411Operations Salaries Expense1,732,000511Officers Salaries Expense1,130,000512Office Salaries Expense287,000519Payroll Tax Expense245,960The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:Dec. 2Issued Check No. 410 for $6,000 to Jay Bank to purchase U.S. savings bonds for employees.Dec. 2Issued Check No. 411 to Jay Bank for $47,047 in payment of $16,302 of social security tax, $4,290 of Medicare tax, and $26,455 of employees' federal income tax due.Dec. 13Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:Salary distribution: Operations$80,000 Officers50,000 Office13,000143,000Deductions: Social security tax8,580 Medicare tax2,145 Federal income tax withheld26,455 State income tax withheld6,435 Savings bond deductions3,000 Medical insurance deductions8,29454,909Net amount 88,091 Dec. 13Issued Check No. 420 in payment of the net amount of the biweekly payroll.Dec. 13Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, $8,580; Medicare tax, $2,145; state unemployment tax, $680; federal unemployment tax, $220.Dec. 16Issued Check No. 424 to Jay Bank for $47,905, in payment of $17,160 of social security tax, $4,290 of Medicare tax, and $26,455 of employees' federal income tax due.Dec. 19Issued Check No. 429 to Sims-Walker Insurance Company for $49,800, in payment of the semiannual premium on the group medical insurance policy.Dec. 27Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:Salary distribution: Operations$78,000 Officers50,000 Office13,000141,000Deductions: Social security tax8,460 Medicare tax2,115 Federal income tax withheld25,803 State income tax withheld6,345 Savings bond deductions3,00045,723Net amount 95,277 Dec. 27Issued 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, $8,460; Medicare tax, $2,115; state unemployment tax, $340; federal unemployment tax, $110.Dec. 27Issued Check No. 543 for $38,520 to State Department of Revenue in payment of employees' state income tax due on December 31.Dec. 31Issued Check No. 545 to Jay Bank for $6,000 to purchase U.S. savings bonds for employees.Dec. 31Paid $75,000 to the employee pension plan. The annual pension cost is $98,000. (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.DateAccountDebitCreditDec. 2 Dec. 2 Dec. 13 Dec. 13 Dec. 13 fill in the blank 56fill in the blank 57 fill in the blank 59fill in the blank 60 fill in the blank 62fill in the blank 63 fill in the blank 65fill in the blank 66 fill in the blank 68fill in the blank 69 Dec. 16 fill in the blank 71fill in the blank 72 fill in the blank 74fill in the blank 75 fill in the blank 77fill in the blank 78 fill in the blank 80fill in the blank 81 Dec. 19 fill in the blank 83fill in the blank 84 fill in the blank 86fill in the blank 87 Dec. 27 fill in the blank 89fill in the blank 90 fill in the blank 92fill in the blank 93 fill in the blank 95fill in the blank 96 fill in the blank 98fill in the blank 99 fill in the blank 101fill in the blank 102 fill in the blank 104fill in the blank 105 fill in the blank 107fill in the blank 108 fill in the blank 110fill in the blank 111 fill in the blank 113fill in the blank 114 Dec. 27 fill in the blank 116fill in the blank 117 fill in the blank 119fill in the blank 120 Dec. 27 fill in the blank 122fill in the blank 123 fill in the blank 125fill in the blank 126 fill in the blank 128fill in the blank 129 fill in the blank 131fill in the blank 132 fill in the blank 134fill in the blank 135 Dec. 27 fill in the blank 137fill in the blank 138 fill in the blank 140fill in the blank 141 Dec. 31 fill in the blank 143fill in the blank 144 fill in the blank 146fill in the blank 147 Dec. 31 fill in the blank 149fill in the blank 150 fill in the blank 152fill in the blank 153 fill in the blank 155fill in the blank 156 2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $7,800; officers salaries, $5,000; officesalaries, $1,300. The payroll taxes are immaterial and are not accrued. If an amount box does not require an entry, leave it blank.DateAccountDebitCreditDec. 312b. Journalize the following adjusting entry on December 31: Vacation pay, $26,300.DateAccountDebitCreditDec. 31

Accounting cycle can be defined as the recording of the business transactions in such a order which…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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	$16,302
213	Medicare Tax Payable	4,290
214	Employees Federal Income Tax Payable	26,455
215	Employees State Income Tax Payable	25,740
216	State Unemployment Tax Payable	2,717
217	Federal Unemployment Tax Payable	858
218	U.S. Saving Bond Deductions Payable	6,000
219	Medical Insurance Payable	49,800
411	Operations Salaries Expense	1,732,000
511	Officers Salaries Expense	1,130,000
512	Office Salaries Expense	287,000
519	Payroll Tax Expense	245,960

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 $47,047 in payment of $16,302 of social security tax, $4,290 of Medicare tax, and $26,455 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	$80,000
Officers	50,000
Office	13,000	143,000
Deductions:
Social security tax	8,580
Medicare tax	2,145
Federal income tax withheld	26,455
State income tax withheld	6,435
Savings bond deductions	3,000
Medical insurance deductions	8,294	54,909
Net amount		88,091

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, $8,580; Medicare tax, $2,145; state unemployment tax, $680; federal unemployment tax, $220.
Dec. 16	Issued Check No. 424 to Jay Bank for $47,905, in payment of $17,160 of social security tax, $4,290 of Medicare tax, and $26,455 of employees' federal income tax due.
Dec. 19	Issued Check No. 429 to Sims-Walker Insurance Company for $49,800, 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	$78,000
Officers	50,000
Office	13,000	141,000
Deductions:
Social security tax	8,460
Medicare tax	2,115
Federal income tax withheld	25,803
State income tax withheld	6,345
Savings bond deductions	3,000	45,723
Net amount		95,277

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, $8,460; Medicare tax, $2,115; state unemployment tax, $340; federal unemployment tax, $110.
Dec. 27	Issued Check No. 543 for $38,520 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 $75,000 to the employee pension plan. The annual pension cost is $98,000. (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	Debit	Credit
Dec. 2


Dec. 2




Dec. 13










Dec. 13


Dec. 13	fill in the blank 56	fill in the blank 57
	fill in the blank 59	fill in the blank 60
	fill in the blank 62	fill in the blank 63
	fill in the blank 65	fill in the blank 66
	fill in the blank 68	fill in the blank 69

Dec. 16	fill in the blank 71	fill in the blank 72
	fill in the blank 74	fill in the blank 75
	fill in the blank 77	fill in the blank 78
	fill in the blank 80	fill in the blank 81

Dec. 19	fill in the blank 83	fill in the blank 84
	fill in the blank 86	fill in the blank 87

Dec. 27	fill in the blank 89	fill in the blank 90
	fill in the blank 92	fill in the blank 93
	fill in the blank 95	fill in the blank 96
	fill in the blank 98	fill in the blank 99
	fill in the blank 101	fill in the blank 102
	fill in the blank 104	fill in the blank 105
	fill in the blank 107	fill in the blank 108
	fill in the blank 110	fill in the blank 111
	fill in the blank 113	fill in the blank 114

Dec. 27	fill in the blank 116	fill in the blank 117
	fill in the blank 119	fill in the blank 120

Dec. 27	fill in the blank 122	fill in the blank 123
	fill in the blank 125	fill in the blank 126
	fill in the blank 128	fill in the blank 129
	fill in the blank 131	fill in the blank 132
	fill in the blank 134	fill in the blank 135

Dec. 27	fill in the blank 137	fill in the blank 138
	fill in the blank 140	fill in the blank 141

Dec. 31	fill in the blank 143	fill in the blank 144
	fill in the blank 146	fill in the blank 147

Dec. 31	fill in the blank 149	fill in the blank 150
	fill in the blank 152	fill in the blank 153
	fill in the blank 155	fill in the blank 156

2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $7,800; officers salaries, $5,000; office
salaries, $1,300. 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
2b. Journalize the following adjusting entry on December 31: Vacation pay, $26,300.
Date
Account
Debit
Credit
Dec. 31

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