3 Problem 2. Mayer & Co. had the following transactions during the year: 1 Jan 1, Borrows $75,000 from the bank and signs a 6 month note, 9% interest 2 Feb 1, Mayer does not separate sales and sales tax. Records the january sales of $19,610, which includes a 6% sales tax April 1, Borrows $80,000 from a bank signing a 3 month note, 6% interest July 1, pays off the $80,000 note and the applicable interest 5 July 1, pays off the $75,000 note and the applicable interest 6 December 31, records payroll for the year. Gross payroll is $65,000, FICA is 7.65%, Federal Witholding tax is 18%, State witholding tax is 3%, FUI is .7%, SUI is 5.4%. (Journalize the payroll to employees as well as the employers portion that needs to be paid) All wages are subject to FICA and unemployment taxes Prepare the journal entries for the above transactions 4 5