The following Payroll Journal entries for Oct. 15 were made by your predecessor For FICA tax, assume that the social security rate is 6.0% and the Medicare rate is 1.5%. The state and federal unemployment tax rates are 5.4% and 0.8%, respectively. The company offers 401k plans to employees. Review the journal entries, then answer the questions that follow JOURNAL POST. REF. DEBIT CREDIT Oct 15 145,500.00 523,800.00 97,000.00 Sales Salaries Expense Officers Salaries Expense Office Salaries Expense Factory Wages Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable 203,700.00 58,200.00 14,550,00 174,600.00 Medical Insurance Payable 106,700.00 145,500.00 470,450.00 15 74 207.00 58,200.00 Retirement Contributions Payable Salaries Payable Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Pension Expense Cash 14,550.00 188.00 1.269.00 15 87,300.00 87,300.00 In order to confirm the previous clerk's payroll calculations, you have been asked to supply the following amounts based on your review of the payroll entries. These amounts will be checked against the company records and investigated further if necessary 1 Determine the payroll amount subject to federal and state unemployment taxes in this payrol 2 What is the total payroll for Copperfield and Company shown in these journalen 3. What is Copperfield and Company's share of 4 How much has Copperfield and Company contributed to en Copperfield and Company issued a 90-day, 5.00% note for $190,000 to a creditor on account. The previous clerk entered the following journal entries to record the note on July 10, and the payment of the note at maturity. JOURNAL ACCOUNTING EQUATION ASSETS Jul 10 Accounts Payable 190,000.00 Notes Payable 190,000.00 Notes Payable 199,500.00 Accounts Payable 190,000.00 Interest Expens 9,500.00 You notice that the journal entry for recording the note on July 10 is correct but the entry for the payment of the note at maturity (including interest did not have a date and was not correct You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (including interest) did not have a date and was not correct Journalize the payment of the note at maturity as should have been journalized. Don't forget to include the date. Assume a 360-day year JOURNAL ACCOUNTING EQUATION DESCAPTION ASSETS BUTIES EQUITY The following journal entry was made by your predecessor to record the annual payment on a 5%, 10-year installment note. JOURNAL DATE DESCRIPTION POST. REF DEST CREDIT Oct 1 710 Interest Expense Notes Payable 152,086.00 550,476.00 Cash 702,562.00 230 Using the information provided, compute the following amounts 1. What was the carrying amount (book value) of the installment note before the payment on October 17 2. What portion of next year's payment will be interest? (Round the amount to the nearest dollar) Copperfield and Company has decided to provide a warranty on its products. The previous clerk lett a note with the files on this new warranty on glass breakage, deciding that an entry for warranty expense was not necessary, with the following reasoning "Our product is the finest in the world, and thus the contingency of a warranty replacement for breakage is remote. Under accounting standards, the proper treatment for a remote likelihood of occurrence is to take no action. Accordingly, in my professional judgment, no journal entry should be made for warranty expense." You should review the previous clerk's notes and evaluate the decision. After refreshing your memory on the treatment of contient liabilities what action will you take? Make no entry, the previous clerk is correct that there is a remote chance of any breakage Make no entry, but disclose the possible warranty liability amount in the notes to the company financial statements Since there's no way to accurately determine the amount of breakage that might occut, no entry or disclosure is required Joumalize an adjusting entry debiting Product Warranty Expense and crediting Product Warranty Payable Assume that a reasonable estimate of the warranty cost can be determined by an examination of prior breakage and replacement data