the following accounts with the balances indicated appear in the ledger of garcon co 546201

PR 10-5A Payroll accounts and year-end entries

The following accounts, with the balances indicated, appear in the ledger of Garcon 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. 410 for $3,400 to Jay Bank to purchase U.S. savings bonds for employees.

2. Issued Check No. 411 to Jay Bank for $27,046 in payment of $9,273 of social security tax, $2,318 of Medicare tax, and $15,455 of employees’ federal income tax due.

13. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

27. Issued Check No. 541 in payment of the net amount of the biweekly payroll.

27. Journalized the entry to record payroll taxes on employees’ earnings of December 27: social security tax, $4,668; Medicare tax, $1,167; state unemployment tax, $225; federal unemployment tax, $75.

27. Issued Check No. 543 for $20,884 to State Department of Revenue in payment of employees’ state income tax due on December 31.

31. Issued Check No. 545 to Jay Bank for $3,400 to purchase U.S. savings bonds for employees.

31. Paid $45,000 to the employee pension plan. The annual pension cost is $60,000.

(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, $8,560; officers salaries, $5,600; office salaries, $1,400. The payroll taxes are immaterial and are not accrued.

b. Vacation pay, $15,000.