(Algorithmic) Recording Various Liabilities Glenview Hardware had the following transactions that produced liabilities during 2020: Purchased merchandise on credit for $30,000. (Note: Assume a periodic inventory system). Year-end wages of $4,000 incurred, but not paid. Related federal income taxes of $480, Social Security of $248 (employee portion), and Medicare taxes of $58 are withheld from employees. Year-end estimated income taxes payable, but unpaid, for the year in the amount of $42,850. Sold merchandise on account for $1,397, including state sales taxes of $67. (Note: Assume a periodic inventory system). Employer's share of Social Security and Medicare taxes for the period were $248 and $58, 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 Payable
Cash
Inventory
Purchases
Sales Revenue
Accounts Payable
Accounts Receivable
Cash
Purchases
Sales Revenue
(Record purchase of inventory on account)
b.
Federal Income Taxes Withholding Payable
Medicare Taxes Expense
Social Security Taxes Expense (Employer)
Wages Expense
Wages Payable
Accounts Receivable
Federal Income Taxes Withholding Payable
Income Taxes Expense
Purchases
Wages Expense
Accounts Payable
Sales Taxes Payable (State)
Social Security Taxes Expense (Employer)
Social Security Taxes Payable (Employee)
Wages Expense
Cash
Medicare Taxes Expense
Medicare Taxes Payable (Employee)
Purchases
Wages Expense
Cash
Purchases
Sales Taxes Payable (State)
Wages Expense
Wages Payable
(Record wages and liabilities)