EXERCISE 2 Instructions: Prepare the general journal entries to record each of the following iterns for Wiler Co. for the year ended December 31. (Omit explanations.) (1) Accrued employee vacation pay at the end of the year is $3,225. (2) The estimated product warranty liability at the end of the year is 3% of sales of $150,000, (3) A partially funded pension plan is maintained for employees at an annual cost of $40,000. At the end of the year, $27,500 is paid to the fund trustee and the remaining accrued pension liability is recognized. JOURNAL PROBLEM 1 The weekly gross payroll of O'Brien Co. on December 7 amounts to $50,000, distributed as follows: sales salaries $34,000; office salaries, $16,000. The following amounts are to be withheld: social security tax, $3,000; Medicare tax, $750; employees' income tax, $7,500; union dues, $900; and United Way, $450. Instructions: Omitting explanations, prepare general journal entries to: (1) Record the payroll. (2) Record the payment of the payroll. (3) Record the employer's payroll taxes. Assume that the entire payroll is subject to social security tax at 6.0%, Medicare tax at 1.5%, federal unemployment tax at 0.8%, and state unemployment tax at 5.4%