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

Question

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:

On page 10 of the journal:

On page 11 of the journal:

Account No. Account Name Balance 211 Salaries Payable — 212 Social Security Tax Payable $9,273 213 Medicare Tax Payable 2,318 214 Employees Federal Income Tax Payable 15,455 215 Employees State Income Tax Payable 13,909 216 State Unemployment Tax Payable 1,400 217 Federal Unemployment Tax Payable 500 218 Bond Deductions Payable $ 3,400 219 Medical Insurance Payable 27,000 411 Operations Salaries Expense 950,000 511 Officers Salaries Expense 600,000 512 Office Salaries Expense 150,000 519 Payroll Tax Expense 137,951

Explanation / Answer

* Please check the exact account title per the chart of accounts since the same is not provided with the question.

Date General Journal Debit Credit Page 10 Dec. 2 Bond Deductions payable 3400 Cash 3400 (To record payment for purchase of bonds) Dec. 2 Social security tax payable 9273 Medicare tax payable 2318 Employees federal income tax payable 15455 Cash 27046 (To record payment of payroll liabilities) Dec. 13 Operations salaries expense 43200 Officers salaries expense 27200 Office salaries expense 6800 Social security tax payable 4632 Medicare tax payable 1158 Employees federal income tax payable 15440 Employees state income tax payable 3474 Bond Deductions payable 1700 Medical insurance payable 4500 Salaries payable 46296 (To record biweekly payroll) Dec. 13 Salaries payable 46296 Cash 46296 (To record payment of biweekly payroll) Dec. 13 Payroll tax expense 6265 Social security tax payable 4632 Medicare tax payable 1158 State unemployment tax payable 350 Federal unemployment tax payable 125 (To record biweekly payroll tax expense) Dec. 16 Social security tax payable 9264 Medicare tax payable 2316 Employees federal income tax payable 15440 Cash 27020 (To record payment of payroll liabilities) Dec. 19 Medical insurance payable 31500 Cash 31500 (To record payment of group medical insurance premium) Page 11 Dec. 27 Operations salaries expense 42800 Officers salaries expense 28000 Office salaries expense 7000 Social security tax payable 4668 Medicare tax payable 1167 Employees federal income tax payable 15404 Employees state income tax payable 3501 Bond Deductions payable 1700 Salaries payable 51360 (To record biweekly payroll) Dec. 27 Salaries payable 51360 Cash 51360 (To record payment of biweekly payroll) Dec. 27 Payroll tax expense 6135 Social security tax payable 4668 Medicare tax payable 1167 State unemployment tax payable 225 Federal unemployment tax payable 75 (To record biweekly payroll tax expense) Dec. 27 Employees state income tax payable 20884 Cash 20884 (To record payment of employees' state income tax liability) Dec. 31 Bond Deductions payable 3400 Cash 3400 (To record payment for purchase of bonds) Dec. 31 Pension expense 60000 Cash 45000 Accrued pension liability* 15000 (To record pension expense) Page 12 Dec. 31 Operations salaries expense 8560 Officers salaries expense 5600 Office salaries expense 1400 Salaries payable 15560 (To record accrued salaries) Dec. 31 Vacation pay expense* 15000 Vacation payable* 15000 (To record accrued vacation pay)

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