The following accounts, with the balances indicated, appear in the ledger of South Mountain CableView Co. on December 1 of the current year:
Salaries Payable ............. €”
FICA Tax Payable .......... $ 9,657
Employees Federal Income Tax Payable . 12,321
Employees State Income Tax Payable .. 11,988
State Unemployment Tax Payable .... 1,180
Federal Unemployment Tax Payable .... 310
Bond Deductions Payable ....... 1,200
Medical Insurance Payable ....... 6,000
Operations Salaries Expense ...... 847,000
Officers€™ Salaries Expense ....... 376,200
Office Salaries Expense ........ 242,000
Payroll Taxes Expense ........ 113,689

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
Dec. 2 Issued Check No. 728 for $1,200 to Cullowee National Bank to purchase U.S. savings bonds for employees.
3 Issued Check No. 729 to Cullowee National Bank for $21,978, in payment of $9,657 of FICA tax and $12,321 of employees€™ federal income tax due.
Dec. 14 Record the entry for the biweekly payroll. A summary of the payroll record follows:

14 Issued Check No. 738 in payment of the net amount of the biweekly payroll.
14 Record the entry for payroll taxes on employees€™ earnings of December 14: FICA tax, $4,634; state unemployment tax, $285; federal unemployment tax, $75.
17 Issued Check No. 744 to Cullowee National Bank for $21,052, in payment of $9,268 of social security tax and $11,784 of employees€™ federal income tax due.
18 Issued Check No. 750 to Bent Creek Insurance Company for $6,000, in payment of the semiannual premium on the group medical insurance policy.
28 Record the entry for the biweekly payroll. A summary of the payroll record follows:

28 Issued Check No. 782 in payment of the net amount of the biweekly payroll.
28 Record the entry for payroll taxes on employees€™ earnings of December 28: FICA tax, $4,658; state unemployment tax, $171; federal unemployment tax, $43.
30 Issued Check No. 791 to Cullowee National Bank for $1,200 to purchase U.S. savings bonds for employees.
30 Issued Check No. 792 for $18,005 to Cullowee National Bank in payment of employees€™ state income tax due on December 31.

Instructions
1. Record the transactions.
2. Record the following adjusting entries on December 31:
a. Salaries accrued: operations salaries, $3,900; officers€™ salaries, $1,750; office salaries, $1,100. The payroll taxes are immaterial and are not accrued.
b. Vacation pay,$11,000.

Transcribed Image Text:

Salary distribution: Operations Officers Office 38,000 17,400 10,800 $66,200 Deductions: FICA tax Federal income tax withheld State income tax withheld Savings bond deductions Medical insurance deductions 4,634 11,784 2,979 600 1,000 20,997 $45,203 Net amount Salary distribution: Operations Officers Office $39,000 17,500 000 67,500 Deductions FICA tax Federal income tax withheld State income tax withheld Savings bond deductions $ 4,658 12,015 3,038 600 20,311 $47,189 Net amount