Part 1 Instructions: Prepare all the journal entries necessary to record the transactions noted below. 1. Cash sales were received for December, which include the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. (sales total $560,000) 2. On December 1, three delivery trucks were purchased for cash with a 5% sales tax. (trucks total $100,000) 3. A suit for breach of contract seeking damages of $3,000,000 was filed and legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $1,000,000 and $2,250,000. No amount within this range is a better estimate of potential damages than any other amount. 4. A deposit was received for equipment rental. The deposit is returnable when equipment is returned. (deposit total $1,000) Debit Credit Part 2 Instructions: Calculate and answer each question below. Be sure to show all work. 1. ALR Inc pays a weekly payroll of $255,000 that includes federal taxes withheld of $38,100, FICA taxes withheld of $23,670, and 401(k) withholdings of $27,000. What is the effect on assets and liabilities from this transaction? Answer: 2. ALR provides its employees two weeks of paid vacation per year. As of December 31, 65 employees have earned two weeks of vacation time to be taken the following year. If the average weekly salary for these employees is $900, what is the required journal entry? Answer: 3. The total payroll of ALR Inc for the month of October, 2020 was $960,000, of which $180,000 represented amounts paid in excess of $128,400 to certain employees. $600,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $180,000 of federal income taxes and $18,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is 8%, and the current F.I.C.A. tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128,400. What amount should Arlo record as payroll tax expense