the following accounts with the balances indicated appear in the ledger of bonnie s 644180

211

Salaries Payable

—

218

Bond Deductions Payable

$3,000

212

Social Security Tax Payable

$8,032

219

Medical Insurance Payable

24,000

213

Medicare Tax Payable

2,114

611

Operations Salaries Expense

850,000

214

Employees Federal Income Tax Payable

13,035

711

Officers Salaries Expense

560,000

215

Employees State Income Tax Payable

12,682

712

Office Salaries Expense

140,000

216

State Unemployment Tax Payable

1,400

719

Payroll Tax Expense

121,506

217

Federal Unemployment Tax Payable

400

Dec. 2.

Issued Check No. 728 for $3,000 to First National Bank to purchase U.S. savings

bonds for employees.

3

Issued Check No. 729 to First National Bank for $23,181, in payment of $8,032

of social security tax, $2,114 of Medicare tax, and $13,035 of employees’ federal

income tax due.

14

Journalized the entry to record the biweekly payroll. A summary of the payroll

record follows:

Salary distribution:

Operations

$38,500

Officers

25,500

Office

6,200

$70,200

Deductions:

Social security tax

$ 3,931

Medicare tax

1,053

Federal income tax withheld

12,496

State income tax withheld

3,159

Savings bond deductions

1,500

Medical insurance deductions

4,000

26,139

Net amount

$44,061

14

Issued Check No. 738 in payment of the net amount of the biweekly payroll.

14

Journalized the entry to record payroll taxes on employees’ earnings of December

14: social security tax, $3,931; Medicare tax, $1,053; state unemployment tax,

$290; federal unemployment tax, $84.

17

Issued Check No. 744 to First National Bank for $22,464, in payment of $7,862

of social security tax, $2,106 of Medicare tax, and $12,496 of employees’ federal

income tax due.

18

Issued Check No. 750 to Pico Insurance Company for $24,000, in payment of

the semiannual premium on the group medical insurance policy.

28

Journalized the entry to record the biweekly payroll. A summary of the payroll

record follows:

Salary distribution:

Operations

$39,000

Officers

26,000

Office

6,400

$71,400

Deductions:

Social security tax

$ 3,856

Medicare tax

1,071

Federal income tax withheld

12,709

State income tax withheld

3,213

Savings bond deductions

1,500

22,349

Net amount

$49,051

28

Issued Check No. 782 in payment of the net amount of the biweekly payroll.

Dec. 28.

Journalized the entry to record payroll taxes on employees’ earnings of December

28: social security tax, $3,856; Medicare tax, $1,071; state unemployment tax,

$155; federal unemployment tax, $38.

30

Issued Check No. 791 to First National Bank for $3,000 to purchase U.S. savings

bonds for employees.

30

Issued Check No. 792 for $19,054 to First National Bank in payment of employees’

state income tax due on December 31.

31

Paid $43,000 to the employee pension plan. The annual pension cost is $45,000.

(Record both the payment and unfunded pension liability.)