Question

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: 101 Salaries Payable — 102 Social Security Tax Payable $2,913 103 Medicare Tax Payable 728 104 Employees Federal Income Tax Payable 4,490 105 Employees State Income Tax Payable 4,078 106 State Unemployment Tax Payable 1,260 107 Federal Unemployment Tax Payable 360 108 Bond Deductions Payable 2,300 109 Medical Insurance Payable 2,520 201 Sales Salaries Expense 700,000 301 Officers Salaries Expense 340,000 401 Office Salaries Expense 125,000 408 Payroll Tax Expense 59,491 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 purchase U.S. savings bonds for employees. 12. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Sales $14,500 Officers 7,100 Office 2,600 $24,200 Deductions: Social security tax $1,452 Medicare tax 363 Federal income tax withheld 4,308 State income tax withheld 1,089 Savings bond deductions 1,150 Medical insurance deductions 420 8,782 Net amount $15,418 12. Issued Check No. 822 in payment of the net amount of the biweekly payroll. 12. Journalized the entry to record payroll taxes on employees' earnings of December 12: 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: Salary distribution: Sales $14,250 Officers 7,250 Office 2,750 $24,250 Deductions: Social security tax $1,455 Medicare tax 364 Federal income tax withheld 4,317 State income tax withheld 1,091 Savings bond deductions 1,150 8,377 Net amount $15,873 26. Issued Check No. 840 for the net amount of the biweekly payroll. 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 purchase U.S. savings bonds 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.)

Answer 1

Check the explanation

Step-by-step explanation:

Part 1

Date Accounts Debit Credit

Dec 1, 2017 Medical Insurance Payable $2,520

Cash $2,520

Dec 1, 2017 Social Security Tax Payable $2,913

Medicare Tax Payable $728

Employees Federal Income Tax Payable $4,490

Cash $8,131

Dec 2, 2017 Bond Deductions Payable $2,300

Cash $2,300

Dec 12, 2017 Sales Salaries Expense $14,500

Officers Salaries Expense $7,100

Office Salaries Expense $2,600

Social Security Tax Payable $1,452

Medicare Tax Payable $363

Employees Federal Income Tax Payable $4,308

Employees State Income Tax Payable $1,089

Medical Insurance Payable $420

Bond Deductions Payable $1,150

Salaries Payable $15,418

Dec 12, 2017 Salaries Payable $15,418

Cash $15,418

Dec 12, 2017 Payroll tax Expenses $2,220

Social Security Tax Payable $1,452

Medicare Tax Payable $363

State Unemployment Tax Payable $315

Federal Unemployment Tax Payable $90

Dec 15, 2017 Social Security Tax Payable $2,904

Medicare Tax Payable $726

Employees Federal Income Tax Payable $4,308

Cash $7,938

Dec 26, 2017 Sales Salaries Expense $14,250

Officers Salaries Expense $7,250

Office Salaries Expense $2,750

Social Security Tax Payable $1,455

Medicare Tax Payable $364

Employees Federal Income Tax Payable $4,317

Employees State Income Tax Payable $1,091

Bond Deductions Payable $1,150

Salaries Payable $15,873

Dec 26, 2017 Salaries Payable $15,873

Cash $15,873

Dec 26, 2017 Payroll tax Expenses $2,009

Social Security Tax Payable $1,455

Medicare Tax Payable $364

State Unemployment Tax Payable $150

Federal Unemployment Tax Payable $40

Dec 30, 2017 Employees State Income Tax Payable $6,258

Cash $6,258

Dec 30, 2017 Bond Deductions Payable $2,300

Cash $2,300

Dec 31, 2017 Pension Expense $65,500

Cash $55,400

Unfunded Pension Liability $10,100