Recording Various Liabilities

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

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

Year-end wages of $22,000 were incurred, but not paid. Related federal income taxes of $2,640, Social Security of $1,364 (employee portion), and Medicare taxes of $319 are withheld from employees.

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

Sold merchandise on account for $1,313, including state sales taxes of $63. (Note: Assume a periodic inventory system).

Employers share of Social Security and Medicare taxes for the period were $1,364 and $319, respectively.

Borrowed cash under a 90-day, 9%, $25,000 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.	Accounts PayableCashInventoryPurchasesSales RevenuePurchases	Purchases	Purchases
	Accounts PayableAccounts ReceivableInventoryPurchasesSales RevenueAccounts Payable	Accounts Payable	Accounts Payable
	(Record purchase of inventory on account)
b.	Federal Income Taxes Withholding PayableMedicare Taxes ExpenseSocial Security Taxes Expense (Employee)Wages ExpenseWages PayableWages Expense	Wages Expense	Wages Expense
	Accounts ReceivableFederal Income Taxes Withholding PayableIncome Taxes ExpenseSales Taxes Payable (State)Wages ExpenseIncome Taxes Expense	Income Taxes Expense	Income Taxes Expense
	Accounts PayableIncome Taxes ReceivableSocial Security Taxes Expense (Employer)Social Security Taxes Payable (Employee)Wages PayableSocial Security Taxes Expense (Employer)	Social Security Taxes Expense (Employer)	Social Security Taxes Expense (Employer)
	Accounts PayableAccounts ReceivableMedicare Taxes Expense (Employer)Medicare Taxes Payable (Employee)PurchasesMedicare Taxes Payable (Employee)	Medicare Taxes Payable (Employee)	Medicare Taxes Payable (Employee)
	Accounts PayableCashMedicare Taxes ReceivableWages ExpenseWages PayableCash	Cash	Cash
	(Record wages and liabilities)
c.	CashIncome Taxes ExpenseIncome Taxes PayableIncome Tax ReceivableInterest ExpenseIncome Taxes Expense	Income Taxes Expense	Income Taxes Expense
	CashIncome Taxes ExpenseIncome Taxes PayableIncome Tax ReceivableInterest ExpenseIncome Taxes Payable	Income Taxes Payable	Income Taxes Payable
	(Record accrued income taxes)
d.	Accounts PayableAccounts ReceivableCashSales RevenueSales Taxes Payable (State)Accounts Receivable	Accounts Receivable	Accounts Receivable
	Accounts ReceivableCashIncome Taxes ExpensePurchasesSales Taxes Payable (State)Sales Taxes Payable (State)	Sales Taxes Payable (State)	Sales Taxes Payable (State)
	Accounts PayableAccounts ReceivableCashIncome Taxes PayableSales RevenueSales Revenue	Sales Revenue	Sales Revenue
	(Record sale)
e.	CashIncome Taxes PayableSales Taxes Payable (State)Social Security Taxes Expense (Employer)Social Security Taxes Payable (Employer)Social Security Taxes Expense (Employer)	Social Security Taxes Expense (Employer)	Social Security Taxes Expense (Employer)
	Income Taxes ExpenseMedicare Taxes ExpenseMedicare Taxes Payable (Employer)Notes PayableWages PayableMedicare Taxes Expense	Medicare Taxes Expense	Medicare Taxes Expense
	Accounts ReceivableSales Taxes Payable (State)Social Security Taxes Expense (Employer)Social Security Taxes Payable (Employer)Wages PayableSocial Security Taxes Payable (Employer)	Social Security Taxes Payable (Employer)	Social Security Taxes Payable (Employer)
	CashMedicare Taxes ExpenseMedicare Taxes Payable (Employer)PurchasesSales RevenueMedicare Taxes Payable (Employer)	Medicare Taxes Payable (Employer)	Medicare Taxes Payable (Employer)
	(Record employer payroll taxes)
f.	Accounts PayableCashNotes PayableSales RevenueSales Taxes Payable (State)Accounts Payable	Accounts Payable	Accounts Payable
	Accounts ReceivableCashNotes PayablePurchasesSales RevenueCash	Cash	Cash
	(Record issuance of note)