CORPORATE FINANCIAL ACCOUNTING 15TH ED
15th Edition
ISBN: 9781337894272
Author: Carl S. Warren
Publisher: CENGAGE L
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Textbook Question
Chapter 10, Problem 10.5BPR
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:
101 Salaries Payable | — | 108 Bond Deductions Payable | $ 2,300 |
102 Social Security Tax Payable | $ 2,913 | 109 Medical Insurance Payable | 2,520 |
103 Medicare Tax Payable | 728 | 201 Operations Salaries Expense | 700,000 |
104 Employees Federal Income Tax Payable | 4,490 | 301 Officers Salaries Expense | 340,000 |
105 Employees State Income Tax Payable | 4,078 | 401 Office Salaries Expense | 155,000 |
106 State |
1,260 | 408 Payroll Tax Expense | 59,491 |
107 Federal Unemployment Tax Payable | 360 |
The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
Dec. 1. | Issued Check No. 815 to Aberderas Insurance Company for $2,520, in payment of the semiannual premium on the group medical insurance policy. | ||
1. | Issued Check No. 816 to Alvarez Bank for $8,131, in payment for $2,913 of social security tax, $728ofMedicare tax, and $4,490 of employees’ federal income tax due. | ||
2. | Issued Check No. 817 for $2,300 to Alvarez Bank to purchase U.S. savings bonds for employees. | ||
Dec. 12. | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: | ||
Salary distribution: | |||
Operations | $14,500 | ||
Officers | 7,100 | ||
Office | 2,600 | $24,200 | |
Deductions: | |||
Social security tax | $1,452 | ||
Medicare tax | 363 | ||
Federal income tax withheld | 4,308 | ||
State income tax withheld | 1,089 | ||
Savings bond deductions | 1,150 | ||
Medical insurance deductions | 420 | 8,782 | |
Net amount | $15,418 | ||
12. | Issued Check No. 822 in payment of the net amount of the biweekly payroll. | ||
12. | Journalized the entry to record payroll taxes on employees’ earnings of December 12: social security tax, $1,452; Medicare tax, $363; state unemployment tax, $315; federal unemployment tax, $90. | ||
15. | Issued Check No. 830 to Alvarez Bank for $7,938, in payment of $2,904 of social security tax, $726 of Medicare tax, and $4,308 of employees’ federal income tax due. | ||
26. | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: | ||
Salary distribution: | |||
Operations | $14,250 | ||
Officers | 7,250 | ||
Office | 2,750 | $24,250 | |
Deductions: | |||
Social security tax | $ 1,455 | ||
Medicare tax | 364 | ||
Federal income tax withheld | 4,317 | ||
State income tax withheld | 1,091 | ||
Savings bond deductions | 1,150 | 8,377 | |
Net amount | $15,873 | ||
Dec. 26. | Issued Check No. 840 for the net amount of the biweekly payroll. | ||
26. | Journalized the entry to record payroll taxes on employees’ earnings of December 26: social security tax, $1,455; Medicare tax, $364; state unemployment tax, $150; federal unemployment tax, $40. | ||
30. | Issued Check No. 851 for $6,258 to State Department of Revenue, in payment of employees’ state income tax due on December 31. | ||
31. | Issued Check No. 852 to Alvarez Bank for $2,300 to purchase U.S. savings bonds for employees. | ||
31. | Paid $55,400 to the employee pension plan. The annual pens1on cost is $65,500. (Record both the payment and the unfunded pension liability.) |
Instructions
1. Journalize the transactions.
2. Journalize the following
A. Salaries accrued: sales salaries, $4,275; officers salaries, $2,175; office salaries, $825. The payroll taxes are immaterial and are not accrued.
B. Vacation pay, $13,350.
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Chapter 10 Solutions
CORPORATE FINANCIAL ACCOUNTING 15TH ED
Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - To match revenues and expenses properly, should...Ch. 10 - Prob. 7DQCh. 10 - Installment notes require equal periodic payments....Ch. 10 - When should the liability associated with a...Ch. 10 - Prob. 10DQ
Ch. 10 - Proceeds from notes payable On January 26, Nyree...Ch. 10 - Prob. 10.2BECh. 10 - Journalize period payroll The payroll register of...Ch. 10 - Prob. 10.4BECh. 10 - Prob. 10.5BECh. 10 - Journalizing installment notes On the first day of...Ch. 10 - Prob. 10.7BECh. 10 - Quick ratio Adieu Company reported the following...Ch. 10 - Current liabilities Bon Nebo Co. sold 30,000...Ch. 10 - Entries for notes payable Bennett Enterprises...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - Entries for notes payable A business issued a...Ch. 10 - Entries for discounted note payable A business...Ch. 10 - Fixed asset purchases with note On June 30,...Ch. 10 - Prob. 10.7EXCh. 10 - Calculate payroll An employee earns 30 per hour...Ch. 10 - Prob. 10.9EXCh. 10 - Summary payroll data In the following summary of...Ch. 10 - Prob. 10.11EXCh. 10 - Payroll entries The payroll register for D. Salah...Ch. 10 - Payroll entries Widmer Company had gross wages of...Ch. 10 - Prob. 10.14EXCh. 10 - Prob. 10.15EXCh. 10 - Accrued vacation pay A business provides its...Ch. 10 - Prob. 10.17EXCh. 10 - Prob. 10.18EXCh. 10 - Entries for installment note transactions On the...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Accrued product warranty Fosters Manufacturing Co....Ch. 10 - Prob. 10.23EXCh. 10 - Prob. 10.24EXCh. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data on employer FICA tax...Ch. 10 - Prob. 10.4APRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 10.1BPRCh. 10 - Prob. 10.2BPRCh. 10 - Wage and tax statement data and employer FICA tax...Ch. 10 - Prob. 10.4BPRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 3COPCh. 10 - Analyze and compare Amazon.com to Best Buy...Ch. 10 - Prob. 10.2MADCh. 10 - Prob. 10.3MADCh. 10 - Analyze and compare Neiman Marcus and Kohls Neiman...Ch. 10 - Analyze and compare Cabelas and Dicks Sporting...Ch. 10 - Ethics in Action Tonya Latirno is a staff...Ch. 10 - Prob. 10.4TIFCh. 10 - Prob. 10.5TIF
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