Questions of Current Liabilities and Leases, please see file attached with questions that I need help with.

Current Liabilities Problem 1 The Accountant for M&M neglected to have the staff accrue the payroll for the last week in December 2014. The following data should have been considered and accounted for in M&M book. Total payroll - $1,350,000 Income taxes to be withheld - $150,000 FICA taxes applicable to the payroll accrual - $28,000 FUTA taxes on accrued payroll - $4,000 Union dues that should have been withheld from employees' payroll - $12,000 Total compensated absences related to payroll - $75,000 vacation time and $85,000 sick time. Employees who do not take vacation will receive compensation in lieu of time taken off, Sick time does not vest and if the employee does not use their sick time, it is forfeited back to the company. Journalize any necessary entries to accrue the above payroll. Problem 2 During the current year M&M was involved in two lawsuits. In the first lawsuit, M&M was sued by two employees who claimed that they were injured by potential defective containers that came apart during loading. The company attorney determined that there is a high probability that the jury will grant punitive damages of $1,000,000. In the second lawsuit, M&M sued a vendor for failure to comply with design specifications which resulted in the faulty containers that caused the injuries to the employees. M&M is suing for $2,500,000 in damages to cover the payment for the first lawsuit and damage to the company's reputation. The attorney is confident that the company will be successful. 1. How should M&M account for the first lawsuit? 2. How should M&M account for the second lawsuit? Leases Problem 1 On January 1, 2014 M&M entered into an agreement to lease a piece of equipment from ABC (the lessor). The lease term is 5 years and interest rate is 8%. The first payment is made on January 1, 2014. The machine has a fair value of $600,000, a useful life of 6 years and no residual value. M&M does not know the interest rate that ABC uses. Assume that the entries have not yet been made on the book of M&M. Make the original lease entry or entries on January 1, 2014 Problem 2 Delta company sells high-end laser printers for $5,000 each. They also offer the option to lease the printers for 5 years. The printers cost Delta $3,500 to manufacture. On January 1. 2014 Delta leased 10 printers to P&P and required that the first payment be made at that time. At the end of the lease term the printers will be returned to Delta. Although the printers will be considered obsolete at the end of the lease they will still be worth something at that time. Delta wants to recover the full sales price, plus 9% interest, over the 5 year-term of the lease. Assume that, for the lease P&P incremental borrowing rate is 16%, and is unaware of Delta implicit rate. P&P assumes the printers will last 5 years. 1. Determine the amount of the lease payments, as determined by Delta 2. Provide the entries required on Delta's books to record the lease and the first payment 3. Compute the total income to be recognize by Delta company in the first year of the lease