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10-5

General Journal

Page 10 has 29 entries

Page 11 has 23 entries

Page 12 has 7 entries

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	2,300
214	Employees Federal Income Tax Payable	15,485
215	Employees State Income Tax Payable	13,916
216	State Unemployment Tax Payable	1,310
217	Federal Unemployment Tax Payable	460
218	Bond Deductions Payable	3,000
219	Medical Insurance Payable	27,000
411	Operations Salaries Expense	930,000
511	Officers Salaries Expense	630,000
512	Office Salaries Expense	160,000
519	Payroll Tax Expense	136,351

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

On page 10 of the journal:

Dec.	2	Issued Check No. 410 for $3,000 to Jay Bank to purchase U.S. savings bonds for employees.
	2	Issued Check No. 411 to Jay Bank for $27,055 in payment of $9,270 of social security tax, $2,300 of Medicare tax, and $15,485 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	$41,400
Officers	26,600
Office	6,600	$74,600
Deductions:
Social security tax	$ 4,476
Medicare tax	1,119
Federal income tax withheld	14,920
State income tax withheld	3,357
Savings bond deductions	1,500
Medical insurance deductions	4,500	(29,872)
Net amount		$44,728

	13	Issued Check No. 420 in payment of the net amount of the biweekly payroll.
	13	Journalized the entry to record payroll taxes on employees earnings of December 13: social security tax, $4,476; Medicare tax, $1,119; state unemployment tax, $360; federal unemployment tax, $125.
	16	Issued Check No. 424 to Jay Bank for $26,110, in payment of $8,952 of social security tax, $2,238 of Medicare tax, and $14,920 of employees federal income tax due.
	19	Issued Check No. 429 to Sims-Walker Insurance Company for $31,500 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	$41,000
Officers	27,400
Office	6,800	$75,200
Deductions:
Social security tax	$ 4,512
Medicare tax	1,128
Federal income tax withheld	14,884
State income tax withheld	3,384
Savings bond deductions	1,500	(25,408)
Net amount		$49,792

	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, $4,512; Medicare tax, $1,128; state unemployment tax, $210; federal unemployment tax, $80.
	27	Issued Check No. 543 for $20,657 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 $3,000 to purchase U.S. 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.
2.	On page 12 of the journal, journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, $8,530; officers salaries, $5,640; office salaries, $1,350. The payroll taxes are immaterial and are not accrued. b. Vacation pay, $15,300.

CHART OF ACCOUNTS
Garcon Co.
General Ledger
ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Social Security Tax Payable 213 Medicare Tax Payable 214 Employees Federal Income Tax Payable 215 Employees State Income Tax Payable 216 State Unemployment Tax Payable 217 Federal Unemployment Tax Payable 218 Bond Deductions Payable 219 Medical Insurance Payable 220 Interest Payable 221 Notes Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 511 Officers Salaries Expense 512 Office Salaries Expense 513 Operations Salaries Expense 519 Payroll Tax Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 710 Interest Expense

General Journal General Journal Instructions PAGE 12 \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ JOURNAL } \\ \hline & DATE & DESCRIPTION & POST. REF. & DEBIT & CREDIT & ASSETS & LIABILITIES & EQUITY \\ \hline 1 & & Adjusting Entries & & & & & & \\ \hline 2 & & & & & & & & \\ \hline 3 & & & & & & & & \\ \hline 5 & & & & & & & & \\ \hline 6 & & & & & & & & \\ \hline 7 & & & & & & & & \\ \hline \end{tabular}

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