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 $17,898 213 Medicare Tax Payable 4,710 214 Employees Federal Income Tax Payable 29,045 215 Employees State Income Tax Payable 28,260 216 State Unemployment Tax Payable 2,983 217 Federal Unemployment Tax Payable 942 218 U.S. Saving Bond Deductions Payable 7,000 219 Medical Insurance Payable 54,600 411 Operations Salaries Expense 1,901,000 511 Officers Salaries Expense 1,240,000 512 Office Salaries Expense 316,000 519 Payroll Tax Expense 270,040 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2 Issued Check No. 410 for $7,000 to Jay Bank to purchase U.S. savings bonds for employees. Dec. 2 Issued Check No. 411 to Jay Bank for $51,653 in payment of $17,898 of social security tax, $4,710 of Medicare tax, and $29,045 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 $86,000 Officers 57,000 Office 14,000 157,000 Deductions: Social security tax 9,420 Medicare tax 2,355 Federal income tax withheld 29,045 State income tax withheld 7,065 Savings bond deductions 3,500 Medical insurance deductions 9,106 60,491 Net amount 96,509 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, $9,420; Medicare tax, $2,355; state unemployment tax, $740; federal unemployment tax, $240. Dec. 16 Issued Check No. 424 to Jay Bank for $52,595, in payment of $18,840 of social security tax, $4,710 of Medicare tax, and $29,045 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $54,600, 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 $83,000 Officers 57,000 Office 14,000 154,000 Deductions: Social security tax 9,240 Medicare tax 2,310 Federal income tax withheld 28,182 State income tax withheld 6,930 Savings bond deductions 3,500 50,162 Net amount 103,838 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, $9,240; Medicare tax, $2,310; state unemployment tax, $370; federal unemployment tax, $120. Dec. 27 Issued Check No. 543 for $42,255 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 $7,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $83,000 to the employee pension plan. The annual pension cost is $108,000. (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

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 $17,898 213 Medicare Tax Payable 4,710 214 Employees Federal Income Tax Payable 29,045 215 Employees State Income Tax Payable 28,260 216 State Unemployment Tax Payable 2,983 217 Federal Unemployment Tax Payable 942 218 U.S. Saving Bond Deductions Payable 7,000 219 Medical Insurance Payable 54,600 411 Operations Salaries Expense 1,901,000 511 Officers Salaries Expense 1,240,000 512 Office Salaries Expense 316,000 519 Payroll Tax Expense 270,040 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2 Issued Check No. 410 for $7,000 to Jay Bank to purchase U.S. savings bonds for employees. Dec. 2 Issued Check No. 411 to Jay Bank for $51,653 in payment of $17,898 of social security tax, $4,710 of Medicare tax, and $29,045 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 $86,000 Officers 57,000 Office 14,000 157,000 Deductions: Social security tax 9,420 Medicare tax 2,355 Federal income tax withheld 29,045 State income tax withheld 7,065 Savings bond deductions 3,500 Medical insurance deductions 9,106 60,491 Net amount 96,509 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, $9,420; Medicare tax, $2,355; state unemployment tax, $740; federal unemployment tax, $240. Dec. 16 Issued Check No. 424 to Jay Bank for $52,595, in payment of $18,840 of social security tax, $4,710 of Medicare tax, and $29,045 of employees' federal income tax due. Dec. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $54,600, 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 $83,000 Officers 57,000 Office 14,000 154,000 Deductions: Social security tax 9,240 Medicare tax 2,310 Federal income tax withheld 28,182 State income tax withheld 6,930 Savings bond deductions 3,500 50,162 Net amount 103,838 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, $9,240; Medicare tax, $2,310; state unemployment tax, $370; federal unemployment tax, $120. Dec. 27 Issued Check No. 543 for $42,255 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 $7,000 to purchase U.S. savings bonds for employees. Dec. 31 Paid $83,000 to the employee pension plan. The annual pension cost is $108,000. (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	$17,898
213	Medicare Tax Payable	4,710
214	Employees Federal Income Tax Payable	29,045
215	Employees State Income Tax Payable	28,260
216	State Unemployment Tax Payable	2,983
217	Federal Unemployment Tax Payable	942
218	U.S. Saving Bond Deductions Payable	7,000
219	Medical Insurance Payable	54,600
411	Operations Salaries Expense	1,901,000
511	Officers Salaries Expense	1,240,000
512	Office Salaries Expense	316,000
519	Payroll Tax Expense	270,040

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

Dec. 2	Issued Check No. 410 for $7,000 to Jay Bank to purchase U.S. savings bonds for employees.
Dec. 2	Issued Check No. 411 to Jay Bank for $51,653 in payment of $17,898 of social security tax, $4,710 of Medicare tax, and $29,045 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	$86,000
Officers	57,000
Office	14,000	157,000
Deductions:
Social security tax	9,420
Medicare tax	2,355
Federal income tax withheld	29,045
State income tax withheld	7,065
Savings bond deductions	3,500
Medical insurance deductions	9,106	60,491
Net amount		96,509

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, $9,420; Medicare tax, $2,355; state unemployment tax, $740; federal unemployment tax, $240.
Dec. 16	Issued Check No. 424 to Jay Bank for $52,595, in payment of $18,840 of social security tax, $4,710 of Medicare tax, and $29,045 of employees' federal income tax due.
Dec. 19	Issued Check No. 429 to Sims-Walker Insurance Company for $54,600, 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	$83,000
Officers	57,000
Office	14,000	154,000
Deductions:
Social security tax	9,240
Medicare tax	2,310
Federal income tax withheld	28,182
State income tax withheld	6,930
Savings bond deductions	3,500	50,162
Net amount		103,838

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, $9,240; Medicare tax, $2,310; state unemployment tax, $370; federal unemployment tax, $120.
Dec. 27	Issued Check No. 543 for $42,255 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 $7,000 to purchase U.S. savings bonds for employees.
Dec. 31	Paid $83,000 to the employee pension plan. The annual pension cost is $108,000. (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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