Question

Dec.	2	Issued Check No. 410 for $4,000 to Jay Bank to purchase retirement savings bonds for employees.
	2	Issued Check No. 411 to Jay Bank for $27,046 in payment of $9,270 of social security tax, $2,306 of Medicare tax, and $15,470 of employees’ federal income tax due.
	13	Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

Salary distribution:
Operations	$41,200
Officers	26,000
Office	6,000	$73,200
Deductions:
Social security tax	$ 4,392
Medicare tax	1,098
Federal income tax withheld	14,640
State income tax withheld	3,294
Retirement savings deductions	2,000
Medical insurance deductions	3,300	28,724
Net amount		$44,476

	13	Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account.
	13	Journalized the entry to record payroll taxes on employees’ earnings of December 13: social security tax, $4,392; Medicare tax, $1,098; state unemployment tax, $330; federal unemployment tax, $105.
	16	Issued Check No. 424 to Jay Bank for $25,620, in payment of $8,784 of social security tax, $2,196 of Medicare tax, and $14,640 of employees’ federal income tax due.
	19	Issued Check No. 429 to Sims-Walker Insurance Company for $23,100 in payment of the semiannual premium on the group medical insurance policy.

On page 11 of the journal:

Dec.

27

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

Salary distribution:
Operations	$40,800
Officers	26,800
Office	6,200	$73,800
Deductions:
Social security tax	$ 4,428
Medicare tax	1,107
Federal income tax withheld	14,604
State income tax withheld	3,321
Retirement savings deductions	2,000	25,460
Net amount		$48,340

	27	Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account.
	27	Journalized the entry to record payroll taxes on employees’ earnings of December 27: social security tax, $4,428; Medicare tax, $1,107; state unemployment tax, $230; federal unemployment tax, $60.
	27	Issued Check No. 543 for $20,533 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 $4,000 to purchase retirement savings bonds for employees.
	31	Paid $51,000 to the employee pension plan. The annual pension cost is $68,000. (Record both the payment and unfunded pension liability.)

	Required:
1.	Journalize the transactions on pages 10 and 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
2.	On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the Chart of Accounts for exact wording of account titles): A. Salaries accrued: operations salaries, $8,550; officers salaries, $5,570; office salaries, $1,440. The payroll taxes are immaterial and are not accrued. B. Vacation pay, $15,200.

Answer 1

1)

Date	Particulars	Dr	Cr
2-Dec	Bonds	4,000
	Jay Bank		4,000
2-Dec	Social security tax Payable	9,270
	Medicare Tax payable	2,306
	Federal Income tax payable	15,470
	Jay Bank		27,046
13-Dec	Salaries Operation	41,200
	Salaries Officers	26,000
	Salaries Office	6,000
	Social security tax Payable		4,392
	Medicare Tax payable		1,098
	Federal Income tax payable		14,640
	State income tax payable		3,294
	Retirement saving payable		2,000
	Medical insuarance payable		3,300
	Cash/ Bank		44,476
13-Dec	Social security tax expense	4,392
	Medicare Tax expenses	1,098
	State unemployment tax expenses	330
	Federal unemployment tax expenses	105
	Social security tax Payable		4,392
	Medicare Tax payable		1,098
	State unemployment tax payable		330
	Federal unemployment tax payable		105
16-Dec	Social security tax Payable	8,784
	Medicare Tax payable	2,196
	Federal Income tax payable	14,640
	Jay Bank		25,620
19-Dec	Medical insuarance payable	23,100
	Cash/Bank		23,100
27-Dec	Salaries Operation	40,800
	Salaries Officers	26,800
	Salaries Office	6,200
	Social security tax Payable		4,428
	Medicare Tax payable		1,107
	Federal Income tax payable		14,604
	State income tax payable		3,321
	Retirement saving payable		2,000
	Cash/ Bank		48,340
27-Dec	Social security tax expense	4,428
	Medicare Tax expenses	1,107
	State unemployment tax expenses	230
	Federal unemployment tax expenses	60
	Social security tax Payable		4,428
	Medicare Tax payable		1,107
	State unemployment tax payable		230
	Federal unemployment tax payable		60
27-Dec	State income tax payable	20,533
	Cash/ Bank		20,533
31-Dec	Bonds	4,000
	Jay Bank		4,000
31-Dec	Pension A/c Dr	68,000
	Outstanding Pending Liability		17,000
	Cash/ Bank		51,000

2)

Date	Particulars	Dr	Cr
31-Dec	Salaries Operation	8550
	Salaries Officers	5570
	Salaries Office	1440
	Salary and Wages payable		15560
31-Dec	Leave	15200
	Leave encashment payable		15200