RECORDING VARIOUS LIABILITIES Glenview Hardware had the following transactions that produced liabilities during 2009:

a. Purchased merchandise on credit for $20,000.

b. Year-end wages of $7,600 incurred, but not paid. Related federal income tax of

$1,200, Medicare tax of $280, and state income tax of $195 are withheld.

c. Year-end estimated income taxes payable, but unpaid, for the year in the amount of

$21,300.

d. Sold merchandise on account for $872, including sales tax of $32.

e. Employer’s share of Social Security tax for the period was $1,154.

f. Borrowed cash under a 90-day, 9 percent, $9,000 interest-bearing note.

Required:

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

Exercise