Sizzling Summer Days is a seasonal hotel that employs 10 employees. Payroll is done monthly. January 2020 wages earned by employees totaled $27,600. Total federal and state income tax withholding totaled $8,280 and $2,208, respectively. Employees portion of heath care (expense bore by the employee, but employer remitted) totaled $5,000 for January. Round all figures to the closet whole dollar. 

1). Prepare Sizzling Summer Days’ journal entry to reflect wages earned by employees in January 2020, with all the applicable withholdings. 

2). Prepare Sizzling Summer Days’ journal entry to reflect the cash received for wages by employees for January payroll. 

3). Prepare Sizzling Summer Days’ journal entry to reflect the employer’s portion of payroll taxes. FUTA rates are .8% and SUTA rates are 5.4%. None of the employees have reached the cap on unemployment taxes. 

4). Sizzling Summer Days provides a pension plan for its employees. For the month of January the company accrued $3,000 in pension expense. Prepare the journal entry to reflect this transaction. 

5). The average room rental rate at Sizzling Summer Days is $200 per night. In the month of January rent revenue totaled $180,000 cash. Sales tax is 7.2%. Prepare the journal entry to reflect the collection of sales tax and subsequent journal entry to reflect the payment of sales tax to the proper taxing authority. 

6). December 2019, a customer paid $20,000 in advance to hold a bank of rooms for guests at a local wedding. The wedding was January 10. Prepare the journal entry to reflect the recognition of this revenue. 

7). Sizzling Summer Days has an outstanding accounts payable of $3,400. The company has the opportunity to receive a 10% cash discount for prompt payment, which they took advantage of for payment. Prepare the journal entry to reflect payment of the accounts payable (from the purchase of inventory). Sizzling Summer Days uses a perpetual inventory system.