The following accounts, with the balances indicated, appear in the ledger of Cod

Question

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:

Paid $55,400 to the employee pension plan. The annual pension cost is $65,500. (Record both the payment and the unfunded pension liability.)

101 Salaries Payable — 102 Social Security Tax Payable $2,913 103 Medicare Tax Payable 728 104 Employees Federal Income Tax Payable 4,490 105 Employees State Income Tax Payable 4,078 106 State Unemployment Tax Payable 1,260 107 Federal Unemployment Tax Payable 360 108 Retirement Savings Deductions Payable 2,300 109 Medical Insurance Payable 2,520 201 Sales Salaries Expense 700,000 301 Officers Salaries Expense 340,000 401 Office Salaries Expense 125,000 408 Payroll Tax Expense 59,491 Required: 1. Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. For December 12th and 26th transactions, (a.) record the payroll and (b.) payment of salaries. Date Account Debit Credit Dec. 1-Ins. Dec. 1-Taxes Dec. 2 Dec. 12 (a.)

Explanation / Answer

Date Accounts Title Dr Cr 1-Dec Medical Insurance payable $2,520 Cash $2,520 1-Dec Social Security Tax Payable $2,913 Medicare Tax Payable 728 Employees Federal Income Tax Payable 4490 Cash $8,131 2-Dec Retirement Savings Deductions Payable 2300 Cash 2300 12-Dec Sales Salaries Expense 14500 Officers Salaries Expense 7100 Office Salaries Expense 2600 Social Security Tax Payable $1,452 Medicare Tax Payable 363 Employees Federal Income Tax Payable 4,308 Employees State income tax Payble 1,089 Retirement Savings Deductions Payable 1,150 Medical insurance payable 420 Salaries Payable $15,418 12-Dec Payroll Bank/salaries payable $15,418 Cash $15,418 15-Dec Payroll tax expense 2,220 Social Security Tax Payable $1,452 Medicare Tax Payable 363 State Unemployment Tax Payable 315 Federal Unemployment Tax Payable 90 26-Dec Sales Salaries Expense 14250 Officers Salaries Expense 7250 Office Salaries Expense 2750 Social Security Tax Payable $1,455 Medicare Tax Payable 364 Employees Federal Income Tax Payable 4,317 Employees State income tax Payble 1,091 Retirement Savings Deductions Payable 1,150 Salaries Payable $15,873 26-Dec Payroll Bank/salaries payable $15,873 Cash $15,873 26-Dec Payroll tax expense 2,009 Social Security Tax Payable $1,455 Medicare Tax Payable 364 State Unemployment Tax Payable 150 Federal Unemployment Tax Payable 40 30-Dec Medical Insurance payable $6,258 Cash $6,258 30-Dec Retirement Savings Deductions Payable 2300 Cash 2300

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