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:

Account No.

Account Name

Balance

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 $9,280 213 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 Bond Deductions Payable $3,200 219 Medical Insurance Payable 24,600 411 Operations Salaries Expense 940,000 511 Officers Salaries Expense 640,000 512 Office Salaries Expense 150,000 519 Payroll Tax Expense 136,151

Explanation / Answer

Dec 2             US Saving Bond                        3,200

To Bank                                   3,200

      (Being cheque issued to purchase US saving bond)

Dec 2            Social security tax payable             9.280

                     Medical tax payable                         2,316

                     Employee federal income tax payable    15,405

                                    To Bank                                             27,001

Dec 13         Salary Expense                                  74,000

                            Social security tax payable                        4,440

                            Medicare tax payable                                 1,110

                            Employees federal incometax payable       14,800

                             State income tax payable                          3,330

                             US savin bank bond                                    1,600

                            Medical insurance payable                            4,100

   Salary payable    44,620

Dec 13       Salary Payable                             44,620

                           To BAnk                                                   44,620

Dec 16          Social security tax payable             8,880

                     Medical tax payable                         2,220

                     Employee federal income tax payable    14,800

                                    To Bank                                             25,900

Dec 19           Insurance premium                               28,700

                                  To   Bank                                                28,700

Dec 27            Salary Expense                                  74,600

                            Social security tax payable                        4,476

                            Medicare tax payable                                 1,119

                            Employees federal incometax payable       14,764

                             State income tax payable                          3,357

                             US savin bank bond                                    1,600

                            Medical insurance payable                            4,100

   Salary payable    49,284

Dec 27           Salary Payable                             49,284

                           To Bank                                                   49,284

Dec 31          US Saving Bond                        3,200
To Bank                                   3,200

Dec 31           Pension expense                    64,000

                           To Bank                                                  48,000

                           To pension liability                                    16,000

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