On December 1, 2017, Smith corporation borrowed $10,000 from the 2^nd National Bank of Lansdale and signed a 3 month, 12% note payable. Smith corporation closes its accounts and prepares financial statements at December 31, 2017. Record the following journal entries for the note.

A, Dec 1, to record the issuance of the note

B. Dec 31 adjusting entry for interest

C. March 1, to record the payment of the note and interest.

2. The total January payroll of Miller Corporation for the month of January was $50,000.

Assume the following tax percentages:

Social Security Tax 6.2% State Income Tax 3%

Medicare Tax 1.45% Local Income Tax 1%

Federal Income Tax 15% State Unemployment Tax 5.4%

Federal Unemployment Tax .8%

a. Compute the amount of taxes to be withheld from the employees for the month of January.

b. Compute the amount of Payroll taxes on the employer for the month of January.

C. Compute the total cost of the employees for the month of January for Miller Corporation.