Panel 1: Mike's "It sure ain't cream soda" remark means one thing to Gordon: Peter and Allyson are getting drunk....and it alarms him. Mike knows this and is not alarmed.
Panel 2: Gordon wants to do the right thing and asks Mike if they should tell the chaperones about this; Mike (who's switched from expecting to see soft-core porn to hoping that 'funny' drunks will liven up the dance and not at all cause its immediate cessation in the interests of health, safety and sanity) asks him if he's crazy.
Panel 3: He then displays the callous ignorance and non-stop stupidity that is his hallmark by telling him not to knock it if he hasn't tried it and that those guys probably know how to have a good time.
Panel 4: When Allyson tells Peter that she feels sick because the wino wine his pals brought over tastes like paint thinner, he tells her to drink up because it's good for her. So much for knowing how to have a good time, Mikey-Boy.
Summary: With this, I hand things off to howtheduck for a couple of weeks. I'd as soon not set up the headers for the next little while because of the fact that Michael's idiocy directly affects two young girls for the worse.