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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:

Account Number	Account	Amount
211	Salaries Payable
212	Social Security Tax Payable	$9,690
213	Medicare Tax Payable	2,550
214	Employees Federal Income Tax Payable	15,725
215	Employees State Income Tax Payable	15,300
216	State Unemployment Tax Payable	1,615
217	Federal Unemployment Tax Payable	510
218	U.S. Saving Bond Deductions Payable	4,000
219	Medical Insurance Payable	29,600
411	Operations Salaries Expense	1,029,000
511	Officers Salaries Expense	672,000
512	Office Salaries Expense	171,000
519	Payroll Tax Expense	146,200

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

Date	Transaction
Dec. 2	Issued Check No. 410 for $4,000 to Jay Bank to purchase U.S. savings bonds for employees.
Dec. 2	Issued Check No. 411 to Jay Bank for $27,965 in payment of $9,690 of social security tax, $2,550 of Medicare tax, and $15,725 of employees' federal income tax due.
Dec. 13	Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

Line Item Description	Amount	Amount
Salary distribution:
Operations	$47,000
Officers	30,000
Office	8,000	$85,000
Deductions:
Social security tax	$5,100
Medicare tax	1,275
Federal income tax withheld	15,725
State income tax withheld	3,825
Savings bond deductions	2,000
Medical insurance deductions	4,930	(32,855)
Net amount		$52,145

Date	Transaction
Dec. 13	Issued Check No. 420 in payment of the net amount of the biweekly payroll.
Dec. 13	Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax, $5,100; Medicare tax, $1,275; state unemployment tax, $400; federal unemployment tax, $130.
Dec. 16	Issued Check No. 424 to Jay Bank for $28,475, in payment of $10,200 of social security tax, $2,550 of Medicare tax, and $15,725 of employees' federal income tax due.
Dec. 19	Issued Check No. 429 to Sims-Walker Insurance Company for $29,600, in payment of the semiannual premium on the group medical insurance policy.
Dec. 27	Journalized the entry to record the biweekly payroll. A summary of the payroll record follows:

Line Item Description	Amount	Amount
Salary distribution:
Operations	$46,000
Officers	30,000
Office	7,000	$83,000
Deductions:
Social security tax	$4,980
Medicare tax	1,245
Federal income tax withheld	15,189
State income tax withheld	3,735
Savings bond deductions	2,000	(27,149)
Net amount		$55,851

Date	Transaction
Dec. 27	Issued Check No. 541 in payment of the net amount of the biweekly payroll.
Dec. 27.	Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, $4,980; Medicare tax, $1,245; state unemployment tax, $200; federal unemployment tax, $65.
Dec. 27	Issued Check No. 543 for $22,860 to State Department of Revenue in payment of employees' state income tax due on December 31.
Dec. 31	Issued Check No. 545 to Jay Bank for $4,000 to purchase U.S. savings bonds for employees.
Dec. 31	Paid $45,000 to the employee pension plan. The annual pension cost is $59,000. (Record both the payment and unfunded pension liability.)

Required:

1. Journalize the transactions. If an amount box does not require an entry, leave it blank. For December 13th transactions, (a.) record the payroll and (b.) payment of salaries. For December 27th transactions, (a.) record the payroll, (b.) payment of salaries, (c.) record the taxes, and (d.) payment of taxes.

2a. Journalize the following adjusting entry on December 31. Salaries accrued: operations salaries, $4,600; officers salaries, $3,000; office salaries, $700. The payroll taxes are immaterial and are not accrued. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Dec. 31	CashOffice Salaries PayableOperations Salaries ExpenseOperations Salaries PayableUnfunded Pension Liability
	Accounts PayableCashOffice Salaries PayableOfficers Salaries ExpenseOfficers Salaries Payable
	CashOffice Salaries ExpenseOffice Salaries PayableOfficers Salaries PayableUnfunded Pension Liability
	Accounts PayableCashSalaries PayableSales Salaries ExpenseVacation Pay Expense

2b. Journalize the following adjusting entry on December 31: Vacation pay, $15,700.

Date	Account	Debit	Credit
Dec. 31	Accounts PayableCashUnfunded Pension LiabilityVacation Pay ExpenseVacation Pay Payable
	Accounts PayableCashUnfunded Pension LiabilityVacation Pay ExpenseVacation Pay Payable

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