The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:Account No.Account NameBalance211Salaries Payable—212Social Security Tax Payable$9,273213Medicare Tax Payable2,318214Employees Federal Income Tax Payable15,455215Employees State Income Tax Payable13,909216State Unemployment Tax Payable1,400217Federal Unemployment Tax Payable500218Bond Deductions Payable$ 3,400219Medical Insurance Payable27,000411Operations Salaries Expense950,000511Officers Salaries Expense600,000512Office Salaries Expense150,000519Payroll Tax Expense137,951 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:On page 10 of the journal:Dec.2Issued Check No. 410 for $3,400 to Jay Bank to purchase U.S. savings bonds for employees. 2Issued Check No. 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. 13Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations$43,200 Officers27,200 Office6,800$77,200Deductions: Social security tax$ 4,632 Medicare tax1,158 Federal income tax withheld15,440 State income tax withheld3,474 Savings bond deductions1,700 Medical insurance deductions4,50030,904Net amount $46,296 13Issued Check No. 420 in payment of the net amount of the biweekly payroll. 13Journalized the entry to record payroll taxes on employees’ earnings of December 13: social security tax, $4,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125. 16Issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 of employees’ federal income tax due. 19Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in payment of the semiannual premium on the group medical insurance policy. On page 11 of the journal:Dec.27Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations$42,800 Officers28,000 Office7,000$77,800Deductions: Social security tax$ 4,668 Medicare tax1,167 Federal income tax withheld15,404 State income tax withheld3,501 Savings bond deductions1,70026,440Net amount $51,360 27Issued Check No. 541 in payment of the net amount of the biweekly payroll. 27Journalized the entry to record payroll taxes on employees’ earnings of December 27: social security tax, $4,668; Medicare tax, $1,167; state unemployment tax, $225; federal unemployment tax, $75. 27Issued Check No. 543 for $20,884 to State Department of Revenue in payment of employees’ state income tax due on December 31. 31Issued Check No. 545 to Jay Bank for $3,400 to purchase U.S. savings bonds for employees. 31Paid $45,000 to the employee pension plan. The annual pension cost is $60,000. (Record both the payment and unfunded pension liability.) Required:1.Journalize the transactions on pages 10 and 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles.2.On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the Chart of Accounts for exact wording of account titles): 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.

Question

The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:Account No.Account NameBalance211Salaries Payable—212Social Security Tax Payable$9,273213Medicare Tax Payable2,318214Employees Federal Income Tax Payable15,455215Employees State Income Tax Payable13,909216State Unemployment Tax Payable1,400217Federal Unemployment Tax Payable500218Bond Deductions Payable$ 3,400219Medical Insurance Payable27,000411Operations Salaries Expense950,000511Officers Salaries Expense600,000512Office Salaries Expense150,000519Payroll Tax Expense137,951 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:On page 10 of the journal:Dec.2Issued Check No. 410 for $3,400 to Jay Bank to purchase U.S. savings bonds for employees. 2Issued Check No. 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. 13Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution:   Operations$43,200  Officers27,200  Office6,800$77,200Deductions:   Social security tax$ 4,632  Medicare tax1,158  Federal income tax withheld15,440  State income tax withheld3,474  Savings bond deductions1,700  Medical insurance deductions4,50030,904Net amount $46,296  13Issued Check No. 420 in payment of the net amount of the biweekly payroll. 13Journalized the entry to record payroll taxes on employees’ earnings of December 13: social security tax, $4,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125. 16Issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 of employees’ federal income tax due. 19Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in payment of the semiannual premium on the group medical insurance policy. On page 11 of the journal:Dec.27Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution:   Operations$42,800  Officers28,000  Office7,000$77,800Deductions:   Social security tax$ 4,668  Medicare tax1,167  Federal income tax withheld15,404  State income tax withheld3,501  Savings bond deductions1,70026,440Net amount $51,360  27Issued Check No. 541 in payment of the net amount of the biweekly payroll. 27Journalized the entry to record payroll taxes on employees’ earnings of December 27: social security tax, $4,668; Medicare tax, $1,167; state unemployment tax, $225; federal unemployment tax, $75. 27Issued Check No. 543 for $20,884 to State Department of Revenue in payment of employees’ state income tax due on December 31. 31Issued Check No. 545 to Jay Bank for $3,400 to purchase U.S. savings bonds for employees. 31Paid $45,000 to the employee pension plan. The annual pension cost is $60,000. (Record both the payment and unfunded pension liability.)  Required:1.Journalize the transactions on pages 10 and 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles.2.On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the Chart of Accounts for exact wording of account titles): 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.

Accepted Answer

GIVEN

Account No.

Account Name

Balance

211
Salaries Payable
—

212
Social Security…

Dec.	2	Issued Check No. 410 for $3,400 to Jay Bank to purchase U.S. savings bonds for employees.
	2	Issued Check No. 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.
	13	Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

Salary distribution:
Operations	$43,200
Officers	27,200
Office	6,800	$77,200
Deductions:
Social security tax	$ 4,632
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
Net amount		$46,296

	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’ earnings of December 13: social security tax, $4,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125.
	16	Issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 of employees’ federal income tax due.
	19	Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 in payment of the semiannual premium on the group medical insurance policy.

Salary distribution:
Operations	$42,800
Officers	28,000
Office	7,000	$77,800
Deductions:
Social security tax	$ 4,668
Medicare tax	1,167
Federal income tax withheld	15,404
State income tax withheld	3,501
Savings bond deductions	1,700	26,440
Net amount		$51,360

	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’ earnings of December 27: social security tax, $4,668; Medicare tax, $1,167; state unemployment tax, $225; 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. 545 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.)