Plymouth Electronics had the following transactions that produced liabilities during 2012:
a. Purchased merchandise on credit for $80,000 (Note: Assume a periodic inventory system).
b. Year-end wages of $40,000 incurred, but not paid. Related income taxes of $13,000 and
Medicare taxes of $580 are withheld. Employee wages are all above the social security maximum, so only Medicare is paid.
c. Year-end estimated income taxes payable, but unpaid, for the year in the amount of $113,615.
d. Sold merchandise on account for $3,636, including state sales taxes of $180
e. Employer’s share of Medicare taxes for the period was $580. The taxes will be paid at a later date.
f. Borrowed cash under a 180-day, 8 percent, $155,000 note.

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

  • CreatedSeptember 22, 2015
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