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Plymouth Electronics had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $80,000. (Note: Assume a periodic inventory system.) b.
Plymouth Electronics had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $80,000. (Note: Assume a periodic inventory system.) b. Year-end wages of $40,000 were incurred, but not paid. Related federal income taxes of $13,000 and Medicare taxes of $580 were withheld. Employee wages are all above the Social Security maximum, so only Medicare was paid. C. Year-end estimated income taxes payable, but unpaid, for the year were $113,615. d. Sold merchandise on account for $3,636, including state sales taxes of $180. (Note: Assume a periodic inventory system.) e. Employer's share of Medicare taxes for the period was $580. The taxes will be paid at a later date. f. Borrowed cash under a 180-day, 8%, $155,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently). If an amount box does not require an entry, leave it blank. a. Purchases 80,000 80,000 Accounts Payable (Record purchase of inventory on account) b. Wages Expense 40,000 Federal Income Taxes Withholding Payable 13,000 Medicare Taxes Payable (Employee) 580 Wages Payable 23,940
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