issued check no 617 for 2 520 to green bank to purchase u s savings bonds for employ 554294
PR 11-6B Payroll accounts and year-end entries
The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year:
|
111 |
Salaries Payable |
— |
118 |
Bond Deductions Payable |
$ 2,520 |
|
112 |
Social Security Tax Payable |
$ 6,847 |
119 |
Medical Insurance Payable |
2,800 |
|
113 |
Medicare Tax Payable |
1,763 |
411 |
Sales Salaries Expense |
778,000 |
|
114 |
Employees Federal Income Tax Payable |
10,873 |
511 |
Officers Salaries Expense |
375,000 |
|
115 |
Employees State Income Tax Payable |
9,874 |
611 |
Office Salaries Expense |
140,000 |
|
116 |
State Unemployment Tax Payable |
1,400 |
618 |
Payroll Tax Expense |
104,610 |
|
117 |
Federal Unemployment Tax Payable |
400 |
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: |
||
|
Salary distribution: |
|||
|
Sales |
$35,300 |
||
|
Officers |
17,000 |
||
|
Office |
6,300 |
$58,600 |
|
|
Deductions: |
|||
|
Social security tax |
$ 3,516 |
||
|
Medicare tax |
879 |
||
|
Federal income tax withheld |
10,431 |
||
|
State income tax withheld |
2,637 |
||
|
Savings bond deductions |
1,260 |
||
|
Medical insurance deductions |
467 |
19,190 |
|
|
Net amount |
$39,410 |
||
|
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: |
||
|
Salary distribution: |
|||
|
Sales |
$35,400 |
||
|
Officers |
17,250 |
||
|
Office |
6,400 |
$59,050 |
|
|
Deductions: |
|||
|
Social security tax |
$ 3,543 |
||
|
Medicare tax |
886 |
||
|
Federal income tax withheld |
10,511 |
||
|
State income tax withheld |
2,657 |
||
|
Savings bond deductions |
1,260 |
18,857 |
|
|
Net amount |
$40,193 |
||
|
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.
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