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On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $23,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $13,560 of federal income taxes, $1,430 of medical insurance deductions, and $840 of union dues. No employee earned more than $7,000 in this first period.

Req 1A:

Calculate below the amounts for each of these four taxes of Regis Company. Regiss state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.)

Req 1B:

Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities. (Round your answers to 2 decimal places.)

Req 2B:

Prepare the journal entry to record Regiss employer payroll taxes resulting from the January 8 payroll. Regiss state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.)

Record the employers payroll expenses and liabilities for the first weekly pay period of the year.

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On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $13 and its retail selling price is $70. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred.

Nov.		11		Sold 80 razors for $5,600 cash.
		30		Recognized warranty expense related to November sales with an adjusting entry.
Dec.		9		Replaced 16 razors that were returned under the warranty.
		16		Sold 240 razors for $16,800 cash.
		29		Replaced 32 razors that were returned under the warranty.
		31		Recognized warranty expense related to December sales with an adjusting entry.
Jan.		5		Sold 160 razors for $11,200 cash.
		17		Replaced 37 razors that were returned under the warranty.
		31		Recognized warranty expense related to January sales with an adjusting entry.

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[The following information applies to the questions displayed below.] On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $13 and its retail selling price is $70. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred.

Nov.		11		Sold 80 razors for $5,600 cash.
		30		Recognized warranty expense related to November sales with an adjusting entry.
Dec.		9		Replaced 16 razors that were returned under the warranty.
		16		Sold 240 razors for $16,800 cash.
		29		Replaced 32 razors that were returned under the warranty.
		31		Recognized warranty expense related to December sales with an adjusting entry.
Jan.		5		Sold 160 razors for $11,200 cash.
		17		Replaced 37 razors that were returned under the warranty.
		31		Recognized warranty expense related to January sales with an adjusting entry.

1. Prepare journal entries to record above transactions and adjustments.

2. How much warranty expense is reported for November and December?

3. How much warranty expense is reported for January?

4. What is the balance of the Estimated Warranty Liability account as of December 31?

5. What is the balance of the Estimated Warranty Liability account as of January 31?

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