The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year:

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
Dec. 1. Issued Check No. 615 to Canal Insurance Company for $2,800, in payment of the semiannual premium on the group medical insurance policy.
1. Issued Check No. 616 to Green Bank for $19,483, in payment for $6,847 of social security tax, $1,763 of Medicare tax, and $10,873 of employees' federal income tax due.
2. Issued Check No. 617 for $2,520 to Green Bank to purchase U.S. savings bonds for employees.
12. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

12. Issued Check No. 622 in payment of the net amount of the biweekly payroll.
12. Journalized the entry to record payroll taxes on employees' earnings of December 12: social security tax, $3,516; Medicare tax, $879; state unemployment tax, $350; federal unemployment tax, $100.
15. Issued Check No. 630 to Green Bank for $18,635, in payment for $7,032 of social security tax, $1,758 of Medicare tax, and $10,431 of employees' federal income tax due.
Dec. 26. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

26. Issued Check No. 640 for the net amount of the biweekly payroll.
26. Journalized the entry to record payroll taxes on employees' earnings of December 26: social security tax, $3,543; Medicare tax, $886; state unemployment tax, $170; federal unemployment tax, $45.
30. Issued Check No. 651 for $15,168 to State Department of Revenue, in payment of employees' state income tax due on December 31.
30. Issued Check No. 652 to Green Bank for $2,520 to purchase U.S. savings bonds for employees.
31. Paid $61,600 to the employee pension plan. The annual pension cost is $72,800. (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, $10,620; officers' salaries, $5,175; office salaries, $1,920. The payroll taxes are immaterial and are not accrued.
b. Vacation pay,$14,840.

111 Salaries Payable 112 Social Security Tax Payable 113 Medicare Tax Payable 114 Employees Federal Income Tax Payable 115 Employees State Income Tax Payable 116 State Unemployment Tax Payable 117 Federal Unemployment Tax Payable 118 Bond Deductions Payable 2,520 $ 6,847 119 Medical Insurance Payable 2,800 778,000 375,000 140,000 104,610 1,763 411 Sales Salaries Expense 873 5 Officers Salaries Expense 9,874 61 Office Salaries Expense 1,400 618 Payroll Tax Expense 400 Salary distribution: Sales Officers $35,300 17,000 6,300 58,600 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Medical insurance deductions 3,516 879 10,431 2,637 1,260 467 19,190 $39,410 Net amount Salary distribution: Sales Officers Office $35,400 17,250 6400 $59,050 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions 3,543 886 10,511 2,657 1,260 18,857 $40,193 Net amount