Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 10, Problem 10.5APR
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 | — | 218 Bond Deductions Payable | $ 3,400 |
| 212 Social Security Tax Payable | $ 9,273 | 219 Medical Insurance Payable | 27,000 |
| 213 Medicare Tax Payable | 2,318 | 411 Operations Salaries Expense | 950,000 |
| 214 Employees Federal Income Tax Payable | 15,455 | 511 Officers Salaries Expense | 600,000 |
| 215 Employees State Income Tax Payable | 13,909 | 512 Office Salaries Expense | 150,000 |
| 216 State |
1,400 | 519 Payroll Tax Expense | 137,951 |
| 217 Federal Unemployment Tax Payable | 500 |
The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
| Dec. 2. | Issued Check No.410 for $3,400 to Jay Bank to purchase U.S. savings bonds for employees. | ||
| 2. | Issued Check No.411 to Jay Bank for $27,046 in payment of $9,273 of social security tax, $2,318 of Medicare tax, and $ 15,455 of employees’ federal income tax due. | ||
| 13. | |||
| Salary distribution: | |||
| Operations | $43,200 | ||
| Officers | 27,200 | ||
| Office | 6,800 | $77,200 | |
| Deductions: | |||
| Social security tax | $ 4,632 | ||
| Medicare tax | 1,158 | ||
| Federal income tax withheld | 15,440 | ||
| State income tax withheld | 3,474 | ||
| Savings bond deductions | 1,700 | ||
| Medical insurance deductions | 4,500 | 30,904 | |
| Net amount | $46,296 | ||
| 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, $4,632; Medicare tax, $1,158; state unemployment tax, $350; federal unemployment tax, $125. | ||
| 16. | Issued Check No. 424 to Jay Bank for $27,020, in payment of $9,264 of social security tax, $2,316 of Medicare tax, and $15,440 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. | ||
| 27. | Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: | ||
| Salary distribution: | |||
| Operations | $42,800 | ||
| Officers | 28,000 | ||
| Office | 7,000 | $77,800 | |
| Deductions: | |||
| Social security tax | $ 4,668 | ||
| Medicare tax | 1,167 | ||
| Federal income tax withheld | 15,404 | ||
| State income tax withheld | 3,501 | ||
| Savings bond deductions | 1,700 | 26,000 | |
| Net amount | $46,296 | ||
| Dec. 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, $4,668; Medicare tax, $1,167; state unemployment tax, $225; federal unemployment tax, $75. | ||
| 27. | Issued Check No. 543 for $20,884 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 $3,400 to purchase U.S. savings bonds for employees. | ||
| 31. | Paid $45,000 to the employee pension plan. The annual pension cost is $60,000. (Record both the payment and unfunded pension liability.) | ||
Instructions
1. Journalize the transactions.
2. Journalize the following
A. Salaries accrued: operations salaries, $8,560; officers salaries, $5,600; office salaries, $1,400. The payroll taxes are immaterial and are not accrued.
B. Vacation pay, $15,000.
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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:
211
Salaries Payable
—
212
Social Security Tax Payable
$17,898
213
Medicare Tax Payable
4,710
214
Employees Federal Income Tax Payable
29,045
215
Employees State Income Tax Payable
28,260
216
State Unemployment Tax Payable
2,983
217
Federal Unemployment Tax Payable
942
218
U.S. Saving Bond Deductions Payable
7,000
219
Medical Insurance Payable
54,600
411
Operations Salaries Expense
1,901,000
511
Officers Salaries Expense
1,240,000
512
Office Salaries Expense
316,000
519
Payroll Tax Expense
270,040
The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
Dec. 2
Issued Check No. 410 for $7,000 to Jay Bank to purchase U.S. savings bonds for employees.
Dec. 2
Issued Check No. 411 to Jay Bank for $51,653 in payment of $17,898 of social security…
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
$16,302
213
Medicare Tax Payable
4,290
214
Employees Federal Income Tax Payable
26,455
215
Employees State Income Tax Payable
25,740
216
State Unemployment Tax Payable
2,717
217
Federal Unemployment Tax Payable
858
218
U.S. Saving Bond Deductions Payable
6,000
219
Medical Insurance Payable
49,800
411
Operations Salaries Expense
1,732,000
511
Officers Salaries Expense
1,130,000
512
Office Salaries Expense
287,000
519
Payroll Tax Expense
245,960
The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:
Dec. 2
Issued Check No. 410 for $6,000 to Jay Bank to purchase U.S. savings bonds for employees.
Dec. 2
Issued Check No. 411 to Jay Bank for $47,047 in payment of $16,302 of social security tax, $4,290 of Medicare tax, and…
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 Salaries Expense
950,000
511
Officers Salaries Expense
600,000
512
Office Salaries Expense
150,000
519
Payroll Tax Expense
137,951
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 $3,400 to Jay Bank to purchase U.S. savings bonds for employees.
2
Issued Check No. 411 to Jay Bank for $27,046 in payment of $9,273…
Chapter 10 Solutions
Corporate Financial Accounting
Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - To match revenues and expenses properly, should...Ch. 10 - Prob. 7DQCh. 10 - Installment notes require equal periodic payments....Ch. 10 - When should the liability associated with a...Ch. 10 - Prob. 10DQ
Ch. 10 - Proceeds from notes payable On January 26, Nyree...Ch. 10 - Prob. 10.2BECh. 10 - Journalize period payroll The payroll register of...Ch. 10 - Prob. 10.4BECh. 10 - Prob. 10.5BECh. 10 - Journalizing installment notes On the first day of...Ch. 10 - Prob. 10.7BECh. 10 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 10 - Entries for notes payable Bennett Enterprises...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - Entries for notes payable A business issued a...Ch. 10 - Entries for discounted note payable A business...Ch. 10 - Fixed asset purchases with note On June 30,...Ch. 10 - Prob. 10.7EXCh. 10 - Calculate payroll An employee earns 44 per hour...Ch. 10 - Prob. 10.9EXCh. 10 - Summary payroll data In the following summary of...Ch. 10 - Payroll tax entries According to a summary of the...Ch. 10 - Payroll entries The payroll register for D. Salah...Ch. 10 - Prob. 10.13EXCh. 10 - Prob. 10.14EXCh. 10 - Prob. 10.15EXCh. 10 - Accrued vacation pay A business provides its...Ch. 10 - Prob. 10.17EXCh. 10 - Prob. 10.18EXCh. 10 - Entries for installment note transactions On the...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Prob. 10.22EXCh. 10 - Prob. 10.23EXCh. 10 - Prob. 10.24EXCh. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data on employer FICA tax...Ch. 10 - Prob. 10.4APRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 10.1BPRCh. 10 - Prob. 10.2BPRCh. 10 - Wage and tax statement data and employer FICA tax...Ch. 10 - Prob. 10.4BPRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 3COPCh. 10 - Prob. 10.1ADMCh. 10 - Prob. 10.2ADMCh. 10 - Neiman Marcus and Kohls: Short-term liquidity...Ch. 10 - Cabelas and Dicks Sporting Goods: Short-term...Ch. 10 - Ethics in Action Tonya Latirno is a staff...Ch. 10 - Prob. 10.3TIF
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- 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: 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: 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: 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 December12: 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: 26. Issued Check No. 840 for the net amount of the biweekly payroll to fund the payroll bank account. Dec. 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.) Instructions 1. Journalize the transactions. 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. b. Vacation pay, 13,350.arrow_forwardPayroll 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: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600; office salaries, 1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.arrow_forwardPayroll 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: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Instructions 1. Journalize the transactions. 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. b. Vacation pay, 13,350.arrow_forward
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