The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1
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The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:
Account No. | Account Name | Balance |
211 | Salaries Payable | — |
212 | Social Security Tax Payable | $9,280 |
213 | Medicare Tax Payable | 2,316 |
214 | Employees Federal Income Tax Payable | 15,405 |
215 | Employees State Income Tax Payable | 13,920 |
216 | State Unemployment Tax Payable | 1,440 |
217 | Federal Unemployment Tax Payable | 430 |
218 | U.S. Saving Bond Deductions Payable | $3,200 |
219 | Medical Insurance Payable | 24,600 |
411 | Operations Salaries Expense | 940,000 |
511 | Officers Salaries Expense | 640,000 |
512 | Office Salaries Expense | 150,000 |
519 | Payroll Tax Expense | 136,151 |
The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
On page 10 of the journal:
Dec. | 2 | Issued Check No. 410 for $3,200 to Jay Bank to purchase U.S. savings bonds for employees. |
2 | Issued Check No. 411 to Jay Bank for $27,001 in payment of$9,280 of social security tax, $2,316 of Medicare tax, and $15,405of employees’ federal income tax due. | |
13 | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: |
Salary distribution: | ||
Operations | $40,600 | |
Officers | 27,000 | |
Office | 6,400 | $74,000 |
Deductions: | ||
Social security tax | $ 4,440 | |
Medicare tax | 1,110 | |
Federal income tax withheld | 14,800 | |
State income tax withheld | 3,330 | |
Savings bond deductions | 1,600 | |
Medical insurance deductions | 4,100 | 29,380 |
Net amount | $44,620 |
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, $4,440; Medicare tax,$1,110; state unemployment tax, $350; federal unemployment tax,$110. | |
16 | Issued Check No. 424 to Jay Bank for $25,900, in payment of$8,880 of social security tax, $2,220 of Medicare tax, and $14,800of employees’ federal income tax due. | |
19 | Issued Check No. 429 to Sims-Walker Insurance Company for$28,700 in payment of the semiannual premium on the group medical insurance policy. |
On page 11 of the journal:
Dec. | 27 | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: |
Salary distribution: | ||
Operations | $40,200 | |
Officers | 27,800 | |
Office | 6,600 | $74,600 |
Deductions: | ||
Social security tax | $ 4,476 | |
Medicare tax | 1,119 | |
Federal income tax withheld | 14,764 | |
State income tax withheld | 3,357 | |
Savings bond deductions | 1,600 | 25,316 |
Net amount | $49,284 |
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, $4,476; Medicare tax,$1,119; state unemployment tax, $220; federal unemployment tax,$80. | |
27 | Issued Check No. 543 for $20,607 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 $3,200 to purchase U.S. savings bonds for employees. | |
31 | Paid $48,000 to the employee pension plan. The annual pension cost is $64,000. (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):
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Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
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