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Make general journal entries to record the following transactions of Club Havasu Vacations for a two-month period.

March 31 Recorded cash sales of $200,000 for the month, plus sales tax of 4% collected on behalf of the state of Arizona.

April     6 Sent March sales tax to the state

Assume the Chicago Tribune publishing company completed the following transactions during 20X8:

Nov.   1 Sold a six-month subscription, collecting cash of $180, plus sales tax of 5%.

Dec. 15 Remitted (paid) the sales tax to the state of Illinois.

31 Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year.

Enter these transactions in the journal. Then report the liability on the company's balance sheet at December 31, 20X8.

The accounting records of Grafton Tire Company included the following at December 31, 20X5:

Estimated Warranty Payable

| Balance  3,000

In the past, Grafton's warranty expense has been 6% of sales. During 20X6, Grafton made sales of $200,000 and paid $10,000 to satisfy warranty claims.

1. Make journal entries for Grafton's warranty expense and cash payments to satisfy warranty claims during 20X6.

2. What balance of Estimated Warranty Payable will Grafton report on its balance sheet at December 21, 20X6?

Estimated warranty payable should be reported on the balance sheet as $5,000.

Lana Gautier is manager of the women's sportswear department of Parisian Department Store in High Point, North Carolina. She earns a base monthly salary of $750 plus a 10% commission on her personal sales. Through payroll deductions, Gautier donates $25 per month to a charitable organization, and she authorizes Parisian to deduct $20 monthly for her health insurance. Tax rates on Gautier's earnings are 10% for income tax and 8% of the first $87,000 for FICA. During the first 11 months of the year, she earned $82,000.

Compute Gautier's gross pay and net pay for December, assuming her sales for the month are $80,000.

Mill Creek Golf Course incurred salary expense of $92,000 for December. The pro shop's payroll expense includes employer FICA tax of 8% in addition to state unemployment tax of 5.4% and federal unemployment tax of 0.8%. Of the total salaries, $88,400 is subject to FICA tax, and $9,000 is subject to unemployment tax. Also, the store provides the following benefits for employees: health insurance (cost to the store, $2,060), life insurance (cost to the store, $350), and pension benefits (cost to the store, 6% of salary expense).

Record Mill Creek's payroll taxes and its expenses for employee benefits.

The records of Excel Food Service show the following figures:

Employee Earnings

(a)   Straight-time earnings.......................$     ?

(b)   Overtime Pay.....................................   5,109

(c)   Total Employee Earnings...................       ?

Deductions And Net Pay

(d)  Withheld Income Tax...........................$ 9,293

(e)   FICA Tax.............................................  6,052

(f)    Charitable Contributions.....................      ?

(g)   Medical Insurance...............................  1,373

(h)   Total Deductions...............................18,880

(i)    Net Pay................................................64,813

Account Debited

(j)    Salary Expense....................................$   ?

1. Determine the missing amounts on lines (a), (c), (f), and (j).

2. Make journal entries for Excel's payroll for the month.