1-CURRENT LIABILITIES (20 points) INSTRUCTIONS: Journalize the following entries for the Gage Company. Round all amounts to the nearest dollar. The company's fiscal year end is May 31. Jan 14 Feb 3 Issued a 120-day, 9% note for $86,000 on account to DeSoto Company. Purchased merchandise by issuing a $48,000, 6%, 90-day note to KMG Corporation. May 4 Paid the amount due on the note payable to KMG Corporation dated Feb 3. Paid the amount due to DeSoto Company on the note dated Jan 14. May 14 May 31 May 31 Gage Company's products are covered by a one-year warranty for parts and labor. The estimated product warranty expense is 2.5% of sales. Sales for the year totaled $1,280,000. Record the payroll for the month of May for Gage Company's employee, Patty O'Furnichure. Patty's gross pay for the month is $5,280. Patty is paid once a month. Round all amounts to the nearest whole dollar. Her deductions are: Federal Income Tax State Income Tax Social Security Medicare Medical Insurance Union Dues $490 264 6.2% 1.45% 200 80 June 16 A customer received warranty repairs requiring $320 in inventory parts and $590 in labor