The following selected transactions relate to liabilities of Interstate Farm Equipment Company for December 2021. Interstates fiscal year ends on December 31. Required: Prepare the appropriate journal entries for these transactions. 1. On December 15, received $5,500 from Bradley Farms toward the sale by Interstate of a $71,500 tractor to be delivered to Bradley on January 6, 2022. 2. During December, received $26,000 of refundable deposits relating to containers used to transport equipment parts. 3. During December, credit sales totaled $822,000. The state sales tax rate is 5% and the local sales tax rate is 2%. (This is a summary journal entry for the many individual sales transactions for the period.)

(For all requirements, if no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Lee Financial Services pays employees monthly. Payroll information is listed below for January 2021, the first month of Lees fiscal year. Assume that none of the employees exceeded any relevant base of pay, such that all benefit percentages apply to the entire $490,000 payroll.

Salaries	$	490,000
Federal income taxes to be withheld		98,000
Federal unemployment tax rate		0.60	%
State unemployment tax rate (after SUTA deduction)		5.40	%
Social security tax rate		6.20	%
Medicare tax rate		1.45	%

Required: Calculate the income and payroll taxes for the January 2021 pay period. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2021 pay period.