Recording Various Liabilities

Glenview Hardware had the following transactions that produced liabilities during 2014:

a.Purchased merchandise on credit for $30,000. (Note: Assume a periodic inventory system.)

b.Year-end wages of $10,000 were incurred, but not paid. Related income taxes of $1,200, Social Security of $620 (employee portion), and Medicare taxes of $145 were withheld.

c.Year-end estimated income taxes payable, but unpaid, for the year were $42,850.

d.Sold merchandise on account for $1,262, including state sales taxes of $48. (Note: Assume a periodic inventory system.)

e.Employer's share of Social Security and Medicare taxes for the period were $620 and $145, respectively.

f.Borrowed cash under a 90-day, 9%, $25,000 note.

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.	Accounts Payable Cash Inventory Purchases Sales Revenue Correct 2	Correct 3
	Accounts Payable Accounts Receivable Inventory Purchases Sales Revenue Correct 4		Correct 5
	(Record purchase of inventory on account)
b.	Income Taxes Payable Medicare Taxes Expense Social Security Taxes Expense (Employee) Wages Expense Wages Payable Correct 8	Correct 9	Correct 10
	Accounts Receivable Income Taxes Expense Income Taxes Payable Sales Taxes Payable (State) Wages Expense Correct 11	Correct 12	Correct 13
	Accounts Payable Income Taxes Receivable Social Security Taxes Expense (Employer) Social Security Taxes Payable (Employee) Wages Receivable Correct 14	Correct 15	Correct 16
	Accounts Receivable Medicare Taxes Expense (Employer) Medicare Taxes Payable (Employee) Purchases Wages Receivable Correct 17	Correct 18	Correct 19
	Accounts Payable Cash Medicare Taxes Receivable Wages Expense Wages Payable Correct 20	Correct 21	Correct 22
	(Record wages and liabilities)
c.	Cash Income Taxes Expense Income Taxes Payable Income Tax Receivable Interest Expense Correct 25	Correct 26
	Cash Income Taxes Expense Income Taxes Payable Income Tax Receivable Interest Expense Correct 27		Correct 28
	(Record accrued income taxes)
d.	Accounts Payable Accounts Receivable Cash Sales Revenue Sales Taxes Payable (State) Correct 31	Correct 32	Correct 33
	Accounts Receivable Cash Income Taxes Expense Purchases Sales Taxes Payable (State) Correct 34	Correct 35	Correct 36
	Accounts Payable Accounts Receivable Cash Income Taxes Payable Sales Revenue Correct 37	Correct 38	Correct 39
	(Record sale)
e.	Cash Income Taxes Payable Sales Taxes Payable (State) Social Security Taxes Expense (Employer) Social Security Taxes Payable (Employer) Correct 42	Correct 43	Correct 44
	Income Taxes Expense Medicare Taxes Expense Medicare Taxes Payable (Employer) Notes Payable Wages Payable Correct 45	Correct 46	Correct 47
	Accounts Receivable Sales Taxes Payable (State) Social Security Taxes Expense (Employer) Social Security Taxes Payable (Employer) Wages Receivable Correct 48	Correct 49	Correct 50
	Cash Medicare Taxes Expense Medicare Taxes Payable (Employer) Purchases Sales Revenue Correct 51	Correct 52	Correct 53
	(Record employer payroll taxes)
f.	Accounts Payable Cash Notes Payable Sales Revenue Sales Taxes Payable (State) Correct 56	Correct 57
	Accounts Receivable Cash Notes Payable Purchases Sales Revenue Correct 58		Correct 59
	(Record issuance of note)