Q1

P82B Eskimo Joes, designer of the worlds second best-selling T-shirt (just behind Hard Rock Cafe), borrows $21 million cash on November 1, 2021. Eskimo Joes signs a six-month, 7% promissory note to Stillwater National Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. Required: 1. Prepare the journal entries on November 1, 2021, to record (a) the notes payable for Eskimo Joes and (b) the notes receivable for Stillwater National Bank. 2. Record the adjustment on December 31, 2021, for (a) Eskimo Joes and (b) Stillwater National Bank. 3. Prepare the journal entries on April 30, 2022, to record payment of (a) the notes payable for Eskimo Joes and (b) the notes receivable for Stillwater National Bank.

Q2

P8-4B Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees' well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 6% of their salaries. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Dental insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld FICA tax rate Federal and state unemployment tax rate $2,500,000 125,000 50,000 17,500 8,750 537,500 7.65% 6.20% Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes