Required information Exercise 9-13A (Algo) Comprehensive single-cycle problem LO 9.1, 9.2, 9-4. 9-5 [The following information applies to the questions displayed below.] The following transactions apply to Park Company for Year 1 : 1. Received $30,000 cash from the issue of common stock 2. Purchased inventory on account for $140,000 3. Sold inventory for $175,000 cash that had cost $108,000. Sales tax was collected at the rate of 6 percent on the inveritory sold 4. Borrowed $22,800 from First State Bank on March 1. Year 1. The note had a 6 percent interest rate and a one-year term to maturity 5. Paid the accounts payable (see transaction 2) 6. Paid the sales tax due on $151,500 of sales. Sales tax on the other $23,500 is not due until after the end of the year 7. Salaries for the year for one employee amounted to $26,000. Assume the Social Security tax rate is 6 percent and the Medicare tax tate is 15 percent. Federal income tax withheld was $5.400. 8. Paid $2.700 for warranty repairs during the year. 9. Paid $12,000 of other operating expenses during the year. 10. Paid a dividend of $5,200 to the shareholders. Adjustments: 11. The products sold in transaction 3 were warranted. Park estimated that the warranty cost would be 6 percent of sales 12. Record the accrued interest at December 31 , Year 1. 13. Record the accrued payroll tax at December 31, Year 1. Assume no payroll taxes have been paid for the year and that the unemployment tax rate is 6.0 percent (federal unemployment tax rate is 0.60 percent and the state unemployment taxiate is 5.40 percent on the first $7,000 of earnings per employee)