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P13.3 (LOI) (Payroll Tax Entries) Cedarville Company pays its orice employee payroll weekly. Below is a partial list of employees and their payron data for August. Because August is their vacation period, vacation pay is also listed Employee Mark Hamill Karen Robbins Brent Kirk Alec Guinness Ken Sprouse Earnings to July 31 Weekly Pay Vacation Pay to Be Received in August $4,200 $200 3.500 150 $300 2,700 110 220 7,400 250 8,000 330 660 Assume that the income tax withheld is 10% of wages, Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The Social Security rate is 8% on employee and employer. Instructions Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company's liability are made separately. Also make the entry to record the monthly payment of payroll liabilities. P13.1 (LOI) (Current Liability Entries and Adjustments) Described below are certain transactions of Edwardson AG. The company uses the periodic inventory system. 1. On February 2, the company purchased goods from Martin Company for 70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts pavable are recorded by Edwardson at net amounts after cash discounts. The invoice was paid on February 26. On April 1, the company bought a truck for 50,000, paying 4.000 in cash ing a 1-year, 12% note for the balance of the purchase price. and signing a 1-year, 12% note for the ba ust 1. the board of directors declared a 300,000 cash dividend that able on September 10 to shareholders of record on August 31. was payable on September 10 to

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