Question

1. Journalize the transactions.

2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year:

a. Product warranty cost, $27,500.

b. Interest on the nine remaining notes owed to Taylor Co.

PR 11-5A 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 213 Medicare Tax Payable 214 Employees Federal Income Tax Payable 215 Employees State Income Tax Payable 216 State Unemployment Tax Payable 217 Federal Unemployment Tax Payable $9,273 2,318 15,455 13,909 1,400 500 218 Bond Deductions Payable3,400 219 Medical Insurance Payable 411 Operations Salaries Expense 950,000 511 Officers Salaries Expense 512 Office Salaries Expense 519 Payroll Tax Expense 27,000 600,000 150,000 137,951 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. rity tax, $2,318 of Medicare tax, and $15,455 of employees' federal income tax due. record follows: 2. Issued Check No. 411 to Jay Bank for $27,046 in payment of $9,273 of social secu 13. Journalized the entry to record the biweekly payroll. A summary of the payroll Salary distribution: Operation:s Officers Office $43,200 27,200 6,800 $77,200 Deductions: Social security tax Medicare tax Federal income tax withheld State income tax withheld Savings bond deductions Medical insurance deductions 4,632 1,158 15,440 3,474 1,700 4,500 30,904 $46,296 Net amount

Answer 1