Exercise 8-61 (Algorithmic) Recording Various Liabilities

Glenview Hardware had the following transactions that produced liabilities during 2020:

1. Purchased merchandise on credit for $30,000. (Note: Assume a periodic inventory system).
2. Year-end wages of $14,000 incurred, but not paid. Related federal income taxes of $1,680, Social Security of $868 (employee portion), and Medicare taxes of $203 are withheld from employees.
3. Year-end estimated income taxes payable, but unpaid, for the year in the amount of $42,850.
4. Sold merchandise on account for $1,187, including state sales taxes of $57. (Note: Assume a periodic inventory system).
5. Employer's share of Social Security and Medicare taxes for the period were $868 and $203, respectively.
6. 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.	Purchases	fill in the blank 2
	Accounts Payable		fill in the blank 4
	(Record purchase of inventory on account)
b.		fill in the blank 6	fill in the blank 7
		fill in the blank 9	fill in the blank 10
		fill in the blank 12	fill in the blank 13
		fill in the blank 15	fill in the blank 16
		fill in the blank 18	fill in the blank 19
	(Record wages and liabilities)
c.		fill in the blank 21
			fill in the blank 23
	(Record accrued income taxes)
d.		fill in the blank 25	fill in the blank 26
		fill in the blank 28	fill in the blank 29
		fill in the blank 31	fill in the blank 32
	(Record sale)
e.		fill in the blank 34	fill in the blank 35
		fill in the blank 37	fill in the blank 38
		fill in the blank 40	fill in the blank 41
		fill in the blank 43	fill in the blank 44
	(Record employer payroll taxes)
f.		fill in the blank 46
			fill in the blank 48
	(Record issuance of note)