b) 1. The following items appear on the balance sheet of a company with a two- month operating cycle. Identify the proper classification of each item as follows: C if it is a current liability. L if it is a long-term liability, or N if it is not a liability. Notes payable (due in 13 to 24 months) Notes payable (due in 6 to 12 months) Notes payable (mature in five years) Current portion of long-term debt Notes payable (due in 120 days) FUTA taxes payable Accounts receivable Sales taxes payable Salaries payable _Wages payable 2. Mest Company has 9 employees. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Cumulative pay for the current year for each of its employees follows. Employee Cumulative Pay Employee Ken S. $6.000 Michael M. Tim V. 60,200 Erin C. Steve S. 87,000 Kyle B. Cumulative Cumulative Pay Employee Pay $143,500 Lori K. $121,000 106,900 Kitty 0. 36,900 118,500 John W. 4,000 Prepare a table with the following six column headings. Compute the amounts in this table for each employee and then total the numerical columns. Pay Subject to FICA Social Security Cumulative Pay Pay Subject to FICA Medicare Pay Subject to FUTA Taxes Pay Subject to SUTA Taxes Employee