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 $12,654 213 Medicare Tax Payable 3,330 214 Employees Federal Income Tax Payable 20,535 215 Employees State Income Tax Payable 19,980 216 State Unemployment Tax Payable 2,109 217 Federal Unemployment Tax Payable 666 218 U.S. Saving Bond Deductions Payable 5,000 219 Medical Insurance Payable 38,600 411 Operations Salaries Expense 1,344,000 511 Officers Salaries Expense 877,000 512 Office Salaries Expense 223,000 519 Payroll Tax Expense 190,920 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2 Issued Check No. 410 for $5,000 to Jay Bank to purchase U.S. savings bonds for employees. Dec. 2 Issued Check No. 411 to Jay Bank for $36,519 in payment of $12,654 of social security tax, $3,330 of Medicare tax, and $20,535 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 $61,000 Officers 40,000 Office 10,000 111,000 Deductions: Social security tax 6,660 Medicare tax 1,665 Federal income tax withheld 20,535 State income tax withheld 4,995 Savings bond deductions 2,500 Medical insurance deductions 6,438 42,793 Net amount 68,207 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, $6,660; Medicare tax, $1,665; state unemployment tax, $530; federal unemployment tax, $170. Dec. 16 Issued Check No. 424 to Jay Bank for $37,185, in payment of $13,320 of social security tax, $3,330 of Medicare tax, and $20,535 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $38,600, 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 $59,000 Officers 40,000 Office 10,000 109,000 Deductions: Social security tax 6,540 Medicare tax 1,635 Federal income tax withheld 19,947 State income tax withheld 4,905 Savings bond deductions 2,500 35,527 Net amount 73,473 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, $6,540; Medicare tax, $1,635; state unemployment tax, $265; federal unemployment tax, $85. Dec. 27 Issued Check No. 543 for $29,880 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 $5,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $58,000 to the employee pension plan. The annual pension cost is $75,000. (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.

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 $12,654 213 Medicare Tax Payable 3,330 214 Employees Federal Income Tax Payable 20,535 215 Employees State Income Tax Payable 19,980 216 State Unemployment Tax Payable 2,109 217 Federal Unemployment Tax Payable 666 218 U.S. Saving Bond Deductions Payable 5,000 219 Medical Insurance Payable 38,600 411 Operations Salaries Expense 1,344,000 511 Officers Salaries Expense 877,000 512 Office Salaries Expense 223,000 519 Payroll Tax Expense 190,920 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2 Issued Check No. 410 for $5,000 to Jay Bank to purchase U.S. savings bonds for employees. Dec. 2 Issued Check No. 411 to Jay Bank for $36,519 in payment of $12,654 of social security tax, $3,330 of Medicare tax, and $20,535 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 $61,000 Officers 40,000 Office 10,000 111,000 Deductions: Social security tax 6,660 Medicare tax 1,665 Federal income tax withheld 20,535 State income tax withheld 4,995 Savings bond deductions 2,500 Medical insurance deductions 6,438 42,793 Net amount 68,207 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, $6,660; Medicare tax, $1,665; state unemployment tax, $530; federal unemployment tax, $170. Dec. 16 Issued Check No. 424 to Jay Bank for $37,185, in payment of $13,320 of social security tax, $3,330 of Medicare tax, and $20,535 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $38,600, 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 $59,000 Officers 40,000 Office 10,000 109,000 Deductions: Social security tax 6,540 Medicare tax 1,635 Federal income tax withheld 19,947 State income tax withheld 4,905 Savings bond deductions 2,500 35,527 Net amount 73,473 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, $6,540; Medicare tax, $1,635; state unemployment tax, $265; federal unemployment tax, $85. Dec. 27 Issued Check No. 543 for $29,880 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 $5,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $58,000 to the employee pension plan. The annual pension cost is $75,000. (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.

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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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	$12,654
213	Medicare Tax Payable	3,330
214	Employees Federal Income Tax Payable	20,535
215	Employees State Income Tax Payable	19,980
216	State Unemployment Tax Payable	2,109
217	Federal Unemployment Tax Payable	666
218	U.S. Saving Bond Deductions Payable	5,000
219	Medical Insurance Payable	38,600
411	Operations Salaries Expense	1,344,000
511	Officers Salaries Expense	877,000
512	Office Salaries Expense	223,000
519	Payroll Tax Expense	190,920

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

Dec. 2	Issued Check No. 410 for $5,000 to Jay Bank to purchase U.S. savings bonds for employees.
Dec. 2	Issued Check No. 411 to Jay Bank for $36,519 in payment of $12,654 of social security tax, $3,330 of Medicare tax, and $20,535 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	$61,000
Officers	40,000
Office	10,000	111,000
Deductions:
Social security tax	6,660
Medicare tax	1,665
Federal income tax withheld	20,535
State income tax withheld	4,995
Savings bond deductions	2,500
Medical insurance deductions	6,438	42,793
Net amount		68,207

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, $6,660; Medicare tax, $1,665; state unemployment tax, $530; federal unemployment tax, $170.
Dec. 16	Issued Check No. 424 to Jay Bank for $37,185, in payment of $13,320 of social security tax, $3,330 of Medicare tax, and $20,535 of employees' federal income tax due.
Dec. 19	Issued Check No. 429 to Sims-Walker Insurance Company for $38,600, 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	$59,000
Officers	40,000
Office	10,000	109,000
Deductions:
Social security tax	6,540
Medicare tax	1,635
Federal income tax withheld	19,947
State income tax withheld	4,905
Savings bond deductions	2,500	35,527
Net amount		73,473

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, $6,540; Medicare tax, $1,635; state unemployment tax, $265; federal unemployment tax, $85.
Dec. 27	Issued Check No. 543 for $29,880 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 $5,000 to purchase U.S. savings bonds for employees.
Dec. 31	Paid $58,000 to the employee pension plan. The annual pension cost is $75,000. (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.

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