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selected transactions of taylor company completed during the fiscal year ended decem 643518

Selected transactions of Taylor Company, completed during the fiscal year ended December 31, are as follows:

Mar. 1.

Purchased merchandise on account from Kelvin Co., $20,000.

Apr. 10.

Issued a 60 day, 12% note for $20,000 to Kelvin Co. on account.

June 9.

Paid Kelvin Co. the amount owed on the note of April 10.

Aug. 1.

Issued a $50,000, 90 day note to Harold Co. in exchange for a building. Harold

 

Co. discounted the note at 15%.

Oct. 30.

Paid Harold Co. the amount due on the note of August 1.

Dec. 27.

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

 

record follows:

 

Salary distribution:

 

 

Sales

$63,400

 

Officers

36,600

 

Office

10,000

$110,000

Deductions:

 

 

Social security tax

$ 5,050

 

Medicare tax

1,650

 

Federal income tax withheld

17,600

 

State income tax withheld

4,950

 

Savings bond deductions

850

 

Medical insurance deductions

1,120

31,220

Net amount

 

$ 78,780

       

 

27

Journalized the entry to record payroll taxes for social security and Medicare

 

from the biweekly payroll.

30

Issued a check in payment of liabilities for employees’ federal income tax of

 

$17,600, social security tax of $10,100, and Medicare tax of $3,300.

31

Issued a check for $9,500 to the pension fund trustee to fully fund the pension

 

cost for December.

Dec. 31.

Journalized an entry to record the employees’ accrued vacation pay, $36,100.

31

Journalized an entry to record the estimated accrued product warranty liability,

 

$37,240.00

Instructions

Journalize the preceding transactions.

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