Problem 2 - Entries for payroll transactions The payroll records of a company provided the following data for the weekly pay period ended December 7: Employee Ronald Arthur John Baines Ted Carter Earnings to End of Previous Week Federal Income Gross Pay Taxes Medical Insurance Deduction Union Dues United Way $ 54,000 $ 1,200 $ 216 $ 125 $ 15 $ 15 40,500 900 162 125 15 30 45,000 1,000 180 150 -0- 20 The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee. The federal and state unemployment tax rates are 0.6% and 5.4%, respectively, on the first $7,000 paid to each employee. Prepare the journal entries to (a) accrue the payroll and (b) record payroll taxes expense. Problem 3 - Warranty Expense - Apple sells a laptop (that costs $600) for $1,000 cash with a two-year parts warranty to a customer on September 20 of Year 1. Apple expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 6 of Year 2, the laptop requires on- site repairs that are completed on the same day. The repair costs $47 for materials taken from the Parts Inventory. These are the only repairs required in Year 2 for this laptop. 1. How much warranty expense does the company report for this laptop in Year 1? 2. How much is the estimated warranty liability for the laptop as of December 31 of Year 1? 3. How much is the estimated warranty liability for the laptop as of December 31 of Year 2? 4. Prepare journal entries to record (a) the laptop's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 6 of Year 2.