Exercise 7-22 (Algo) Transaction analysis-various accounts LO 4, 5, 8 [The following information applies to the questions displayed below.] A company incurred the following transactions: a. Wages of $2,450 accrued at the end of the prior fiscal period were paid this fiscal period. b. Real estate taxes of $6,600 applicable to the current period have not been accrued. c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $780,000 of 8.5% bonds. d. The premium related to the bonds in part c has not been amortized for the current month. The current-month amortization is $130. e. Based on past experience with its warranty program, the estimated warranty expense for the current period should be 0.2% of sales of $1,131,000. f. Analysis of the company's income taxes indicates that taxes currently payable are $171,600 and that the deferred tax liability should be increased by $63,180. Exercise 7-22 (Algo) Part 1 Required: a-1. Show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by selecting the amount and indicating whether it is an addition (+) or a subtraction (-). Transaction/ Adjustment Current Assets Current Liabilities Long-Term Debt Net Income a. b. C. d. e. f. [The following information applies to the questions displayed below.] The following summary data for the payroll period ended December 27, 2018, are available for Cayman Coating Co.: Gross pay FICA tax withholdings Income tax withholdings Group hospitalization insurance Employee contributions to pension plan Total deductions Net pay $ 96,000 ? 15,130 1,910 ? 29,851 ? Additional information: For employees, FICA tax rates for 2018 were 7.65% on the first $118,500 of each employee's annual earnings. However, no employees had accumulated earnings for the year in excess of the $118,500 limit. . . For employers, FICA tax rates for 2018 were also 7.65% on the first $118,500 of each employee's annual earnings. The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee's annual earnings. Only $14,100 of the gross pay amount for the December 27, 2018, pay period was owed to employees who were still under the annual limit. Required: a-1. Assuming that Cayman Coating Co.'s payroll for the last week of the year is to be paid on January 3, 2019, use t model to record the effects of the December 27, 2018, entries for Accrued payroll. Indicate the financial statement e decreases with a minus sign to indicate a negative financial statement effect.) Assets || | || + Stockholders' Equity Balance Sheet Liabilities + + ffect. (Enter Net Income II || | || = Revenues Income Statement Expenses