1. Addidas Co. had total payroll of $40,000 for the week ending March 5. The FICA rate is 7.65%, federal unemployment tax is 5.4% and state unemployment rate is .8%. **Assume total payroll is subject to federal and state unemployment taxes. Journalize Addidas Co.s payroll tax expenses.

2. Morgan works for Addidas Company. For the month ended January 31, he earned $5,800. FICA taxes are 7.65%, state income taxes to be withheld totaled $150. Federal income taxes withheld totaled $340. His health insurance is $18.00, and he contributes 7% of his gross pay into his retirement account.

a. Prepare the journal entry to record Morgans earnings.

3. The register tape of Rouxdy Co. indicated sales of $17,250. Assuming a sales tax rate of 6.25%, journalize their sales.

4. On June 1, Addidas Co. sold 15,000 yearly subscriptions of its monthly magazine to customers for $22.00 each. Customers received their first subscription of the magazine July 1. Prepare the journal entries for June 1 and July 1.

5. Madison Co. signed a $21,000, 6%, 6-month note payable at State Bank on August 1. Prepare journal entries for the following dates: August 1, December 31, and the retirement of the note.

6. Prepare the journal entry to record the payment of sales tax owed by Rouxdy Co. (from #3 above).

7. Madison Co. sells 13,000 scanners at a price of $250.00 each. The selling price includes a warranty (1 year) on parts. Madison expects that 4.5% of the scanners will be defective and that warranty repair costs will be $56 per unit. Complete the following:

a. Journalize the sale (assume a 7.75% sales tax rate).

b. Estimate, and then journalize the warranty liability.

8. Madison 101 honored scanners (from #7 above).

9. Rouxdy signed a 1 year, 4% note on September 1 for $15,000. Prepare the journal entries for the following dates: Sept. 1, Dec. 31, and the retirement of the note.

10. Addidas paid payroll taxes from #1 above.

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