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

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
Dec. 2. Issued Check No. 210 for $4,200 to Ace Bank to purchase U.S. savings bonds for employees.
5. Issued Check No. 211 to Ace Bank for $31,255 in payment of $10,830 of social security tax, $2,850 of Medicare tax, and $17,575 of employees' federal income tax due.
16. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

Dec. 16. Issued Check No. 220 in payment of the net amount of the biweekly payroll.
16. Journalized the entry to record payroll taxes on employees' earnings of December 16: social security tax, $5,697; Medicare tax, $1,424; state unemployment tax, $450; federal unemployment tax, $150.
19. Issued Check No. 224 to Ace Bank for $31,048, in payment of $11,394 of social security tax, $2,848 of Medicare tax, and $17,566 of employees' federal income tax due.
19. Issued Check No. 229 to Blackwood Insurance Company for $33,000, in payment of the semiannual premium on the group medical insurance policy.
30. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

30. Issued Check No. 341 in payment of the net amount of the biweekly payroll.
30. Journalized the entry to record payroll taxes on employees' earnings of December
30: social security tax, $5,634; Medicare tax, $1,409; state unemployment tax, $225; federal unemployment tax, $75.
30. Issued Check No. 243 for $25,599 to State Department of Revenue in payment of employees' state income tax due on December 31.
30. Issued Check No. 245 to Ace Bank for $4,200 to purchase U.S. savings bonds for employees.
31. Paid $50,000 to the employee pension plan. The annual pension cost is $65,000. (Record both the payment and unfunded pension liability.)

Instructions
1. Journalize the transactions.
2. Journalize the following adjusting entries on December 31:
a. Salaries accrued: operations salaries, $5,140; officers salaries, $3,410; office salaries, $840. The payroll taxes are immaterial and are not accrued.
b. Vacation pay,$17,500.

Transcribed Image Text:

311 Salaries Payable 312 Social Security Tax Payable 313 Medicare Tax Payable 314 Employees Federal Income Tax Payable 7,575 315 Employees State Income Tax Payable 7,100 316 State Unemployment Tax Payable 317 Federal Unemployment Tax Payable 318 Bond Deductions Payable 4,200 $10,830 319 Medical Insurance Payable 33,000 2,850 511 Operations Salaries Expense ,50,000 750,000 190,000 163,680 611 Officers Salaries Expense 612 Office Salaries Expense 619 Payroll Tax Expense 1,800 600 Salary distribution: Operations Officers Office $52,200 34,100 8,650 94,950 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Medical insurance deductions 5,697 1,424 17,566 4,273 2,100 5,500 36,560 $58,390 Net amount Salary distribution: Operations Officers Office $51,400 34,100 8,400 $93,900 Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions 5,634 1,409 17,184 4,226 2,10030553 Net amount 63,347