Water Way Company's Anna Ward is continuing her analysis of the company's position and believe the company will need to borrow $30,000 in order to expand operations. They consult Stream City Bank and secure a 9%, one-year note on September 1,2025 wih interest due at maturity. Additionally, the company hires an employee, Jacob Varny, on September 1 . Jacob will receive a salary of 51,500 per month. Payroll deductions include federal income tax at 30%. OASDI at 6.2%. Medicare at 1.45% and monthly health insurance premium of S140. The company will incur matching FICA taxes, FUTA tax at 0.6%, and SUTA tax at 5.4%. Round calculations to two decimals. Omit explanations on journal entries. Read the requirements. Requirements 1. Record the issuance of the $30,000 note payable on September 1,2025 2. Record the empioyee payroll and employer payroll tax entries on September 30,2025 3. Record all payments related to September's payroll. Payments are made on October 15,2025 4. Record the entry to accrue interest due on the note at December 31, 2025 5. Record the entry Water Way Company would make to record the payment to the bank on September 1,2026. Requirement 1. Record the issuance of the $30,000 note payable on September 1, 2025. (Record debits first, then credits. Exclude explanations from any joumal entries.) Requirement 2. Record the employee payroll and employer payroll tax entries on September 30,2025. (Round all calculations to two decimal places. Record debits first, then credits. Exclude explanations from any journal entries.) Start by preparing the compound joumal entry to record salaries expense and payroll withholdings on September 30,2025 . Do not record the employer payroll tax with this entry. We will do that in the following step. Requirement 3. Record all payments related to September's payroll. Payments are made on October 15, 2025. (Round all calculations to two decimal places. Record debits first, then credits. Exclude explanations from any jouinal entries.) Begin by recording the entry to show the payment to Jacob Varny. Do not record the payment of employer payroll taxes and employee withholdings yet. We will do that in the following step. Now record a compound joumal entry for the payment of employer payroll taxes and employee withholdings. Requirement 4. Record the entry to accrue interest due on the note at December 31, 2025. (Round all calculations to two decimal places. Record debits first, then credits. Exclude explanations from any journal entries.) Requirement 5. Record the entry Water Way Company would make to record the payment to the bank on September 1.2026 (Record debits first then credits. Excude explanations from any journal entries.)
