Chapter 8-Current Liabilities 1. On September 1, 2015, Allied Moving Corp. borrows $100,000 cash from First National Bank. Allied signs a six-month, 6% note payable. Interest is payable at maturity. Allied's year-end is December 31. 1. Record the note payable by Allied Moving Corp. 2. Record the appropriate adjusting entry for the note by Allied Moving Corp. on December 31, 2015. 3. Record the payment of the note at maturity. 2. Accurate Reports has 50 employees each working 40 hours per week and earning $25 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% of the first $113,700 earned per employee and 1.45% thereafter. Unemployment taxes are 3.8% of the first $7,000 earned per employee. 1. Compute the total salaries expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January. 2. Compute the total payroll tax expense Accurate Reports will pay for the first week of January 3. Rotary Tools sells power tools and backs each product it sells with a one-year warranty against defects. Based on previous experience, the company expects warranty costs to be approximately 5% of sales. By the end of the first year, sales and actual warranty expenditures are $800,000 and $13,000, respectively. 1. Does this situation represent a contingent liability? Why or why not? 2. Record warranty expense and warranty liability for the year based on 5% of sales. 3. Record the reduction in warranty liability for the actual warranty expenditures incurred during the year. 4. What is the balance in the Warranty Liability account after the entries in parts 2 and 3