Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
26th Edition
ISBN: 9781305714731
Author: Warren/Reeve/Duchac
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 11, Problem 11.5BPR
Payroll accounts and year-end entries
The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year:
101 Salaries Payable | — |
102 Social Security Tax Payable | 52,913 |
103 Medicare Tax Payable | 728 |
104 Employees Federa1 Income Tax Payable | 4,490 |
1 OS Employees State Income Tax Payable | 4,073 |
T C-5 State |
1,260 |
107 Federal Unemployment Tax Payable | 360 |
108 Retirement Savings | |
Deductions Payable | $ 2,300 |
109 Medical Insurance Payable | 2,520 |
201 Sales Salaries Expense | 700,000 |
301 Officers Salaries Expense | 340,00O |
401 Office Salaries Expense | 125,000 |
408 Payroll Tax Expense | 59,491 |
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, $728 of Medicare tax, and $4,490 of employees’ federal income tax due. |
2. | Issued Check No. 817 for $2,300 to Alvarez Bank to invest in a retirement savings account for employees. |
12 | |
12. | Issued Check No. 822 in payment of the net amount of the biweekly payroll to fund tile payroll bank account. |
12. | Journalized the entry to record payroll taxes on employees' earnings of December 12: social security tax, SI,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: |
Dec. 26. | Journalized the entry to record payroll taxes on employees' earnings of December 26: social security tax, SI,455; Medicare tax, $364; state unemployment tax, SI50; federal unemployment tax, S40. |
30. | Issued Check No. 851 for $6,258 to State Department of Revenue, in payment of employees' state income tax due on December 31. |
30. | Issued Check No. 852 to Alvarez Bank for $2,300 to invest in a retirement savings account for employees. |
31 | Paid $55,400 to the employee pension plan. The annual pension cost is $65,500. (Record both the payment and the unfunded pension liability.) |
Instructions
- 1. Journalize the transactions.
- 2. Journalize the following
adjusting entries on December 31:- 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.
Expert Solution & Answer
Trending nowThis is a popular solution!
Chapter 11 Solutions
Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
Ch. 11 - Does a discounted note payable provide credit...Ch. 11 - Employees are subject to taxes withheld from their...Ch. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - To match revenues and expenses properly, should...Ch. 11 - Prob. 8DQCh. 11 - When should the liability associated with a...Ch. 11 - Prob. 10DQ
Ch. 11 - Prob. 11.1APECh. 11 - Proceeds from notes payable On January 26, Nyree...Ch. 11 - Prob. 11.2APECh. 11 - Prob. 11.2BPECh. 11 - Prob. 11.3APECh. 11 - Prob. 11.3BPECh. 11 - Prob. 11.4APECh. 11 - Prob. 11.4BPECh. 11 - Prob. 11.5APECh. 11 - Prob. 11.5BPECh. 11 - Prob. 11.6APECh. 11 - Prob. 11.6BPECh. 11 - Prob. 11.7APECh. 11 - Estimated warranty liability Quantas Industries...Ch. 11 - Quick ratio Nabors Company reported the following...Ch. 11 - Quick ratio Adieu Company reported the following...Ch. 11 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 11 - Entries for discounting notes payable Griffin...Ch. 11 - Evaluating alternative notes A borrower has two...Ch. 11 - Entries for notes payable A business issued a...Ch. 11 - Prob. 11.5EXCh. 11 - Prob. 11.6EXCh. 11 - Prob. 11.7EXCh. 11 - Calculate payroll An employee earns 32 per hour...Ch. 11 - Calculate payroll Diego Company has three...Ch. 11 - Summary payroll data In the following summary of...Ch. 11 - Prob. 11.11EXCh. 11 - Payroll entries The payroll register for Proctor...Ch. 11 - Payroll entries Widmer Company had gross wages of...Ch. 11 - Prob. 11.14EXCh. 11 - Prob. 11.15EXCh. 11 - Prob. 11.16EXCh. 11 - Prob. 11.17EXCh. 11 - Prob. 11.18EXCh. 11 - Prob. 11.19EXCh. 11 - Accrued product warranty General Motors...Ch. 11 - Prob. 11.21EXCh. 11 - Quick ratio Gmeiner Co. had the following current...Ch. 11 - Quick ratio The current assets and current...Ch. 11 - Liability transactions The following items were...Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Wage and tax statement data on employer FICA tax...Ch. 11 - Prob. 11.4APRCh. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 11.1BPRCh. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Prob. 11.3BPRCh. 11 - Prob. 11.4BPRCh. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 11.3CPPCh. 11 - Ethics and professional conduct in business Tonya...Ch. 11 - Prob. 11.2CPCh. 11 - Prob. 11.3CPCh. 11 - Contingent liabilities Altria Group, Inc., has...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY