Question

In: Accounting

Payroll Accounts and Year-End Entries The following accounts, with the balances indicated, appear in the ledger...

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:

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

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:

Dec. 1. Issued Check No. 815 to Aberderas Insurance Company for $2,520, in payment of the semiannual premium on the group medical insurance policy.
1. Issued Check No. 816 to Alvarez Bank for $8,131, in payment for $2,913 of social security tax, $728 of Medicare tax, and $4,490 of employees' federal income tax due.
2. Issued Check No. 817 for $2,300 to Alvarez Bank to invest in a retirement savings account for employees.
12. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:
Salary distribution:
Sales $14,500
Officers 7,100
Office 2,600 $24,200
Deductions:
Social security tax $1,452
Medicare tax 363
Federal income tax withheld 4,308
State income tax withheld 1,089
Retirement savings deductions 1,150
Medical insurance deductions 420 8,782
Net amount $15,418
12. Issued Check No. 822 in payment of the net amount of the biweekly payroll to fund the payroll bank account.
12. Journalized the entry to record payroll taxes on employees' earnings of December 12: social security tax, $1,452; Medicare tax, $363; state unemployment tax, $315; federal unemployment tax, $90.
15. Issued Check No. 830 to Alvarez Bank for $7,938, in payment of $2,904 of social security tax, $726 of Medicare tax, and $4,308 of employees' federal income tax due.
26. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:
Salary distribution:
Sales $14,250
Officers 7,250
Office 2,750 $24,250
Deductions:
Social security tax $1,455
Medicare tax 364
Federal income tax withheld 4,317
State income tax withheld 1,091
Retirement savings deductions 1,150 8,377
Net amount $15,873
26. Issued Check No. 840 for the net amount of the biweekly payroll to fund the payroll bank account.
26. Journalized the entry to record payroll taxes on employees' earnings of December 26: social security tax, $1,455; Medicare tax, $364; state unemployment tax, $150; federal unemployment tax, $40.
30. Issued Check No. 851 for $6,258 to State Department of Revenue, in payment of employees' state income tax due on December 31.
30. Issued Check No. 852 to Alvarez Bank for $2,300 to invest in a retirement savings account for employees.
31. Paid $55,400 to the employee pension plan. The annual pension cost is $65,500. (Record both the payment and the unfunded pension liability.)

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.)
Dec. 12 (b.)
Dec. 12-Taxes
Dec. 15
Dec. 26 (a.)
Dec. 26 (b.)
Dec. 26-Taxes
Dec. 30-Taxes
Dec. 30-Bonds
Dec. 31

2. Journalize the following adjusting entries on December 31:

a. Salaries accrued: sales salaries, $4,275; officers salaries, $2,175; office salaries, $825. The payroll taxes are immaterial and are not accrued. For a compound transaction, if an amount box does not require an entry, leave it blank.

Date Account Debit Credit
Dec. 31

b. Vacation pay, $13,350.

Date Account Debit Credit
Dec. 31

Solutions

Expert Solution

Date Account Description Debit Credit
1-Dec Medical Insurance Payable      2,520.00
Cash        2,520.00
(Issued Check No. 815 to Aberderas Insurance Company)
1-Dec Employees Federal Income Tax Payable      4,490.00
Social Security Tax Payable      2,913.00
Medicare Tax Payable          728.00
Cash        8,131.00
(Issued Check No. 816 to Alvarez Bank for $8,131)
2-Dec Retirement Savings Deductions Payable      2,300.00
Cash        2,300.00
(Issued Check No. 817 for $2,300 to Alvarez Bank)
12-Dec Sales Salaries Expense    14,500.00
Officers Salaries Expense      7,100.00
Office Salaries Expense      2,600.00
Medical Insurance Payable           420.00
Social Security Tax Payable        1,452.00
Medicare Tax Payable           363.00
Retirement Savings Deductions Payable        1,150.00
Employees Federal Income Tax Payable        4,308.00
State Income Tax Payable        1,089.00
Salary Payable     15,418.00
(Being Payroll expenses Recorded)
12-Dec Salary Payable    15,418.00
Cash     15,418.00
(Being salary Paid)
12-Dec Payroll taxes      2,220.00
Social Security Tax Payable        1,452.00
Medicare Tax Payable           363.00
State Unemployment Tax Payable           315.00
Federal Unemployment Tax Payable              90.00
(Being Payroll Expenses Recorded)
15-Dec Social Security Tax Payable      2,904.00
Medicare Tax Payable          726.00
Federal Unemployment Tax Payable      4,308.00
To Cash        7,938.00
(Issued Check No. 830 to Alvarez Bank for $7,938)
26-Dec Sales Salaries Expense    14,250.00
Officers Salaries Expense      7,250.00
Office Salaries Expense      2,750.00
Medical Insurance Payable
Social Security Tax Payable        1,455.00
Medicare Tax Payable           364.00
Retirement Savings Deductions Payable        1,150.00
Employees Federal Income Tax Payable        4,317.00
State Income Tax Payable        1,091.00
Salary Payable     15,873.00
(Being Payroll expenses Recorded)
26-Dec Salary Payable    15,873.00
Cash     15,873.00
(Being salary Paid)
26-Dec Payroll taxes      2,009.00
Social Security Tax Payable        1,455.00
Medicare Tax Payable           364.00
State Unemployment Tax Payable           150.00
Federal Unemployment Tax Payable              40.00
(Being Payroll Expenses Recorded)
30-Dec State Income Tax Payable      6,528.00
Cash        6,528.00
(Issued Check No. 851 for $6,258 to State Department of Revenue,)
30-Dec Retirement Savings Deductions Payable      2,300.00
Cash        2,300.00
(Issued Check No. 852 to Alvarez Bank for $2,300 )
31-Dec Pension Expenses    65,500.00
Cash     55,400.00
Pension liability     10,100.00
2
a Sales Salaries Expense      4,275.00
Officers Salaries Expense      2,175.00
Office Salaries Expense          825.00
To Accrued Salaries        7,275.00
b Vacation Expenses    13,350.00
To Vacation Payable     13,350.00

Related Solutions

Payroll Accounts and Year-End Entries The following accounts, with the balances indicated, appear in the ledger...
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: 211 Salaries Payable — 212 Social Security Tax Payable $11,628 213 Medicare Tax Payable 3,060 214 Employees Federal Income Tax Payable 18,870 215 Employees State Income Tax Payable 18,360 216 State Unemployment Tax Payable 1,938 217 Federal Unemployment Tax Payable 612 218 Bond Deductions Payable 4,000 219 Medical Insurance Payable 35,500 411 Operations Salaries...
Payroll Accounts and Year-End Entries The following accounts, with the balances indicated, appear in the ledger...
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: 211 Salaries Payable — 212 Social Security Tax Payable $17,328 213 Medicare Tax Payable 4,560 214 Employees Federal Income Tax Payable 28,120 215 Employees State Income Tax Payable 27,360 216 State Unemployment Tax Payable 2,888 217 Federal Unemployment Tax Payable 912 218 Bond Deductions Payable 7,000 219 Medical Insurance Payable 52,900 411 Operations Salaries...
Payroll Accounts and Year-End Entries The following accounts, with the balances indicated, appear in the ledger...
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: 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...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: Account No. Account Name Balance 211 Salaries Payable — 212 Social Security Tax Payable $9,280 213 Medicare Tax Payable 2,302 214 Employees Federal Income Tax Payable 15,430 215 Employees State Income Tax Payable 13,912 216 State Unemployment Tax Payable 1,340 217 Federal Unemployment Tax Payable 480 218 Bond Deductions Payable $3,400 219 Medical Insurance Payable 22,200 411 Operations Salaries...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: Account No. Account Name Balance 211 Salaries Payable — 212 Social Security Tax Payable $9,280 213 Medicare Tax Payable 2,320 214 Employees Federal Income Tax Payable 15,460 215 Employees State Income Tax Payable 13,908 216 State Unemployment Tax Payable 1,320 217 Federal Unemployment Tax Payable 550 218 Bond Deductions Payable $3,800 219 Medical Insurance Payable 19,800 411 Operations Salaries...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: Account No. Account Name Balance 211 Salaries Payable — 212 Social Security Tax Payable $9,280 213 Medicare Tax Payable 2,316 214 Employees Federal Income Tax Payable 15,405 215 Employees State Income Tax Payable 13,920 216 State Unemployment Tax Payable 1,440 217 Federal Unemployment Tax Payable 430 218 U.S. Saving Bond Deductions Payable $3,200 219 Medical Insurance Payable 24,600 411...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: 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 Retirement Savings Deductions Payable 3,400 219 Medical Insurance Payable 27,000 411 Operations...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: 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...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: Account No. Account Name Balance 211 Salaries Payable — 212 Social Security Tax Payable $9,270 213 Medicare Tax Payable 2,306 214 Employees Federal Income Tax Payable 15,470 215 Employees State Income Tax Payable 13,918 216 State Unemployment Tax Payable 1,380 217 Federal Unemployment Tax Payable 470 218 Bond Deductions Payable $4,000 219 Medical Insurance Payable 19,800 411 Operations Salaries...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December...
The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: Account No. Account Name Balance 211 Salaries Payable — 212 Social Security Tax Payable $9,280 213 Medicare Tax Payable 2,316 214 Employees Federal Income Tax Payable 15,405 215 Employees State Income Tax Payable 13,920 216 State Unemployment Tax Payable 1,440 217 Federal Unemployment Tax Payable 430 218 U.S. Saving Bond Deductions Payable $3,200 219 Medical Insurance Payable 24,600 411...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT