The following transactions apply to Park Co. for Year 1: 1. Received $29,000 cash from the issue of common stock. 2. Purchased inventory on account for $142,000. 3. Sold Inventory for $173,500 cash that had cost $106,500. Sales tax was collected at the rate of 7 percent on the inventory sold. 4. Borrowed $21,600 from First State Bank on March 1, Year 1. The note had a 7 percent interest rate and a one-year term to maturity 5. Pald the accounts payable (see transaction 2). 6. Paid the sales tax due on $154,500 of sales. Sales tax on the other $19,000 is not due until after the end of the year. 7. Salaries for the year for the one employee amounted to $25,000. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1.5 percent. Federal income tax withheld was $5,400. 8. Pald $2,600 for warranty repairs during the year. 9. Pald $13,000 of other operating expenses during the year 10. Paid a dividend of $4,800 to the shareholders. Adjustments: 11. The products sold in transaction 3 were warranted. Park estimated that the warranty cost would be 5 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 tax rate is 5.40 percent on the first $7,000 of earnings per employee). Required: a. Record the above transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction at Journal entry worksheet 11 13 14 > 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 percent. Notwiter debit before credits Event 13 General Journal Debit Credit