Recording Various Liabilities}

Yarmouth Electronics had the following transactions that produced liabilities during 2018:

a. Purchased merchandise on credit for \(\$ 80,000\). (Note: Assume a periodic inventory system.)

b. Year-end wages of \(\$ 40,000\) incurred, but not paid. Related income taxes of \(\$ 13,000\) and Canada Pension Plan premiums of \(\$ 580\) were withheld.

c. Year-end estimated corporation income tax payable, but unpaid, for the year in the amount of \(\$ 113,615\).

d. Sold merchandise on account for \(\$ 3,636\), including provincial sales taxes of \(\$ 180\). (Note: Assume a periodic inventory system.)

e. Employer's share of Canada Pension Plan premiums for the period was \(\$ 580\). The premiums will be paid at a later date.

f. Borrowed cash under a 180 -day, \(8 \%, \$ 155,000\) note.

Required:

Prepare the entries to record these transactions (treat each transaction independently).

\section*{Exercise