ACCO 112 -Assignment WK 2 E-1 On January 1, 2017, the ledger of Edmiston Software Company contains the following liablity Accounts Payable Sales Taxes Payable Unearned Service Revenue $42,500 5,800 15,000 During January the following selected transactions occurred. Jan. 1 Borrowed $30,000 in cashfrom Amsterdam Bank on a 4-month, 8%,$30,000 note. Sold merchandise for cash totaling $10,400, which includes 4% sales taxes. 5 12 Provided services for customers who had made advance payments of $9,000. 14 20 25 (Credit Service Revenue.) Paid state treasurer's department for sales taxes collected in December 2016, $5,800. Sold 900 units of a new product on credit at $52 per unit, plus 4% sales tax. This new product is subject to a 1-year warranty. Sold merchandise for cash totaling $18,720, which includes 4% sales taxes. (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 5% of sales of the new product. (c) Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in accounts payable. E-2 Otto Drug Store has four employees who are paid on an hourly basis plus timeand-a-half for all hours worked in excess of 40 a week. Payroll data for the week ended February 15, 2017, are shown below. Hours Hourly Income Tax Fund Employee Worked Rate Withholdings Contributions M. Dingler 3 $12.00 12.00 10.00 10.00 $34 20 51 36 $? 10.00 5.00 5.00 42 D. Patel L. Grimmett A. Bly 46 The following tax rates are applicable: FICA 7.65%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%. The first three employees are sales clerks store wages expense). The fourth employee performs administrative duties (office wages expense). Prepare a payroll register for the weekly payrol E-3 Using the information from the exercise above (E-2) Instructions a. Journalize the payroll on February 15, 2017, and the accrual of employer payroll taxes. b. Journalize the payment of the payroll on February 16, 2017 c. Journalize the remittance to the Federal Reserve bank on February 28, 2017, of the FICA and federal income taxes payable to the government