Payable Transactions Richmond Company engaged in the following transactions: a. Purchased $16,000 of supplies from ABC Supplies on February 16. Amount due in full on March 31. b. Paid for 25% of the purchased merchandise (transaction a) on February 26. c. On March 31, negotiated a payment extension with ABC for the remainder of the balance from the February 16 purchase by signing a 1-year, 10% note. d. Borrowed $300,000 on a 10-month, 8% interest-bearing note on April 30.1 e. Purchased $78,000 of merchandise on June 4. Amount due in full on June 30. f. Paid for the purchased merchandise (transaction e) on June 24. 9. Received from Haywood, Inc., on August 19 a $16,000 deposit against a total selling price of $160,000 for services to be performed for Haywood. h. Paid quarterly installments of Social Security and Medicare and individual income Tax withholdings, as shown below, on October 15. The Social Security and Medicare were previously recorded as expenses during the quarter and the amounts paid represent both the employee and employer shares (50% each): Social Security taxes withheld Medicare taxes withheld i Federal income taxes withheld $185,000 43,266 319,000 1. On December 15, Richmond completed the services ordered by Haywood on August 19. Haywood's remaining balance of $144,000 is due on January 31. Required: 1. Prepare journal entries for these transactions. If an amount box does not require an entry, leave it blank. a. Feb. 16 b. Feb. 26 c. Mar. 31 (Record purchase of supplies on account) (Record partial payment of supplier) 88 88 (Record issuance of note to cover unpaid portion of account payable) b. Feb. 26 c. Mar. 31 (Record partial payment of supplier) 88 d. Apr. 30 (Record issuance of note to cover unpaid portion of account payable) e. June 4 (Record issuance of note) f. June 24 (Record purchase of inventory on account) 38 38 g. Aug. 19 h. Oct. 15 (Record payment of supplier) (Record receipt of deposit for services not yet performed) f. June 24 (Record purchase of inventory on account) 9. Aug. 19 (Record payment of supplier) h. Oct. 15 (Record receipt of deposit for services not yet performed) 33 1. Dec. 15 (Record employer payroll taxes) D (Record recognition of revenue) 2. Prepare any adjusting entries necessary at December 31. If an amount box does not require an entry, leave it blank. Dec. 31 (Record accrued interest). 88