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:
On page 11 of the journal:
Dec 1 Issued Check No. 815 to Aberderas Insurance Company for 52,520, in payment of the semiannual premium on the group medical insurance policy.
1. Issued Check No. 816 to Alvarez Bar* for 58.131. In payment for 52.913 of social security tar, 5728 of Medicare tax. and 54.490 of employees' federal income tax due.
2. Issued Check No. 817 for $2300 to Alvarez 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. 822 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, 51,452 Medicare tax, 5363: state unemployment tax, 5315: federal unemployment tax. 590.
15 Issued Check No. 830 to Alvarez Bank for 57,938, in payment of 52,904 of social security tax, 5726 of Medicare tax, and 54,308 of employees' fedeal income tax due.
On page 11 of the journal.
26 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

26 Issued Check No. 840 for the net ammo of the biweekly payroll.
26Journalized the entry to record payroll taxes on employees' earrings of December 26: social security tax. S1,455: Medicare tar, S364: state unemployment tar, 5150: federal unemployment tax, 540.
30 Issued Check No. 851 for $6,258 to State Department of Revenue, in payment of employees' state income tax due on December 31. 30 Issued Check No. 852 to Mvarez Bark for S2,300 to purchase U.S. savings bonds for employees.
31 Paid 555.400 to the employee pension plan The annual pension cost is $65,500. (Record both the payment and the unfinded pension liability.)
Required:
1. Journalize the transactions on pages 11 and 12 of the journal.
2 On page 13 of the journal, journalize the following adjusting entries on December 31 (refer to the Chart accounts for exact wording o f account tittles
A. Salaries accrued: sales salaries, $4,275; officer's salaries, $2175; office salaries, $825 The Payroll taxes are immaterial and are not accrued
B. Vacation pay, $13,350.

Transcribed Image Text:

Account No. Account Name Balance 212 213 214 215 216 217 218 219 511 512 513 519 Salaries Payable Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Employees State Income Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Bond Deductions Payable Medical Insurance Payable Sales Salaries Expense Officers Salaries Expense Office Salaries Expense Payroll Tax Expense 2,913 728 4,490 4,078 1,260 360 2,300 2,520 700,000 340,000 125,000 59,491 Salary distribution: Sales Officers Office Deductions Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Medical insurance deductions Net amount $14,500 7,100 2,600 24,200 $1,452 363 4,308 1,089 1,150 420 8,782 $15,418 Salary distribution: Sales Officers $14,250 7,250 2,750 $24,250 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Net amount $1,455 364 4,317 1,091 1,150 8,377