$1.$ Proceeds from Notes Payable

Whimsical Inc. borrowed cash from First South Bank by issuing a $90-$day note with a face amount of $$210,000.$

a$.$ Determine the proceeds of the note, assuming that the note carries an interest rate of $8\%.$

b$.$ Determine the proceeds of the note, assuming that the note is discounted at $8\%.$

$2.$ Employee Net Pay

Jackson Mason$$s weekly gross earnings for the week ended October $10$ were $$2,100,$ and his federal income tax withholding was $$326\mathrm{.}74.$ Assuming that the social security rate is $6\%$ and Medicare is $1\mathrm{.}5\%$ of all earnings, what is Mason$$s net pay?

$3.$ Journalize Period Payroll

The payroll register of Windy Inc. indicates $$8,350$ of social security tax withheld and $$1,725$ of Medicare tax withheld on total salaries of $$184,000$ for the period. Federal withholding for the period totaled $$35,910.$ Retirement savings withheld from employee paychecks were $$3,400$ for the period. Journalize the period$$s payroll.

$4.$ Journalize Payroll Tax

The payroll register of Windy Inc. indicates $$8,350$ of social security tax withheld and $$1,725$ of Medicare tax withheld on total salaries of $$184,000$ for the period. Earnings of $$15,000$ are subject to state and federal unemployment compensation taxes at the federal rate of $0\mathrm{.}6\%$ and the state rate of $5\mathrm{.}4\%.$ Journalize the entry to record the payroll tax expense for the period.

$5.$ Vacation Pay and Pension Benefits

Tonga Corp. provides its employees with vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $$74,200$ for the period. The pension formula indicated a pension cost of $$258,920.$ Only $$225,000$ was contributed to the pension plan administrator. Journalize the vacation pay and pension benefits.

$6.$ Journalizing Installment Notes

On the first day of the fiscal year, a company issues $$45,000,7\%,4-$year installment notes that have annual payments of $$13,285\mathrm{.}26.$ The first note payment consists of $$3,150$ of interest and $$10,135\mathrm{.}26$ of principal repayment.

a$.$ Journalize the entry to record the issuance of the installment notes.

b$.$ Journalize the first annual note payment.

$7.$ Estimated Warranty Liability

Milan Company sold $$270,000$ of equipment during May under a one$-$year warranty. The cost to repair defects under the warranty is estimated at $3\%$ of the sales price. On December $21,$ a customer required a $$90$ part replacement plus $$40$ of labor under the warranty. Journalize the entry for the estimated warranty expense and for the warranty work.