The following accounts, with the balances indicated, appear in the ledger of Acadia Outdoor Equipment Company 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. 728 to Pico Insurance Company for $4,200, in payment of the semiannual premium on the group medical insurance policy.
2. Issued Check No. 729 to First National Bank for $17,997, in payment for $6,236 of social security tax, $1,641 of Medicare tax, and $10,120 of employees’ federal income tax due.
3. Issued Check No. 730 for $1,500 to First National Bank to purchase U.S. savings bonds for employees.
14. Journalized the entry to record 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. Journalized the entry to record payroll taxes on employees’ earnings of December 14: social security tax, $2,948; Medicare tax, $804; state unemployment tax, $260; federal unemployment tax, $65.
Dec. 17. Issued Check No. 744 to First National Bank for $17,045, in payment for $5,896 of social security tax, $1,608 of Medicare tax, and $9,541 of employees’ federal income tax due.
28. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

28. Issued Check No. 782 for the net amount of the biweekly payroll.
28. Journalized the entry to record payroll taxes on employees’ earnings of December 28: social security tax, $2,959; Medicare tax, $822; state unemployment tax, $160; federal unemployment tax, $40.
30. Issued Check No. 791 for $14,724 to First National Bank, in payment of employees’ state income tax due on December 31.
30. Issued Check No. 792 to First National Bank for $1,500 to purchase U.S. savings bonds for employees.
31. Paid $59,500 to the employee pension plan. The annual pension cost is $65,000. (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, $3,360; officers salaries, $1,600; office salaries, $520. The payroll taxes are immaterial and are not accrued.
b. Vacation pay,$13,600.

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211 212 213 214 215 216 217 218 219 611 711 712 719 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 Taxes Expense 6,236 1,641 10,120 9,846 1,100 275 1,500 4,200 745,800 347,600 110,000 94,207 Salary distribution: Sales Officers Office 33,000 15,600 5,000 $53,600 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Medical insurance deductions 2,948 804 9,541 2,412 750 700 17,155 $36,445 Net amount Salary distribution: Sales Officers Office $33,600 16,000 5,200 $54,800 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions 2,959 822 9,754 2,466 750 16,751 $38,049 Net amount