Question

Glenview Hardware had the following transactions that produced liabilities during 2012:
a. Purchased merchandise on credit for $30,000 (Note: Assume a periodic inventory system).
b. Year-end wages of $10,000 incurred, but not paid. Related income taxes of $1,200, Social Security of$620 (employee portion), and Medicare taxesof$145 are withheld.
c. Year-end estimated income taxes payable, but unpaid, for the year in the amount of $42,850.
d. Sold merchandise on account for $1,262, including state sales taxes of $48
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 percent, $25,000 note.

Required:
Prepare the entry to record each of these transactions (treat each transaction independently).


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  • CreatedSeptember 22, 2015
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