Business
Engineering
Math
Science
Social Science
Cornerstones of Financial Accounti...
Solutions
Cornerstones of Financial Accounti...
Recording Various Liabilities
Glenview Hardware had the following transactions that produced liabilities during 2020:
a. Purchased merchandise on credit for $30,000. ( Note: Assume a periodic inventory system.)
b. Year-end wages of $10,000 were incurred, but not paid. Related federal income taxes of $1,200, Social Security of $620 (employee portion), and Medicare taxes of $145 were with-held from employees.
c. Year-end estimated income taxes payable, but unpaid, for the year were $42,850.
d. Sold merchandise on account for $1,262, including state sales taxes of S48. ( Note: Assume a periodic inventory system.)
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%, $25,000 note.
Required:
Prepare the entry to record each of these transactions (treat each transaction independently).
Concept introduction:
Liabilities:
Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.
To calculate:
The Journal entries to record the transactions.
The Journal entries to record the transactions are explained as follows:
| Glenview Hardware | |||
| Journal Entries | |||
| # | Account Titles | Debit | Credit |
| a | Purchases | $ 30,000 | |
| Accounts Payable | $ 30,000 | ||
| (Being merchandise purchased on account) | |||
| b. | Salaries Expense | $ 10,000 | |
| Federal Tax Payable | $ 1,200 | ||
| Social Security Tax Payable | $ 620 | ||
| Medicare Tax Payable | $ 145 | ||
| Salaries Payable | $ 8,035 | ||
| (Being payroll expense recorded) | |||
| c... | |||
Chapter 8 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addDetermining supplies purchased The supplies and supplies expense accounts at December 31, after adjusting entri...
Financial & Managerial Accounting
Why are closing entries required at the end of an accounting period?
Corporate Financial Accounting
Describe how an enterprise system can assist an organization in optimizing its value system.
Accounting Information Systems
(Welfare Cost of Monopoly) Explain why the welfare loss of a monopoly may be smaller or larger than the loss sh...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Refer to Table 1.6. a. What is the average cost for the tablets? b. Compare the average cost of tablets with a ...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
DEFAULT RISK PREMIUM The real risk-free rate, r, is 1.7%. Inflation is expected to average 15% a year for the n...
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
BOND VALUATION Nesmith Corporations outstanding bonds have a 1,000 par value, an 8% semiannual coupon, 14 years...
Fundamentals of Financial Management (MindTap Course List)
It is sometimes suggested that the Federal Reserve should try to achieve zero inflation. If we assume that velo...
Brief Principles of Macroeconomics (MindTap Course List)
Draw an example of a production possibilities frontier for Robinson Crusoe, a shipwrecked sailor who spends his...
Principles of Microeconomics (MindTap Course List)
INCOME STATEMENT Patterson Brothers recently reported an EBITDA of 7.5 million and net income of 2.1 million. I...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Sales Message: Promoting Products and Services: Identify a situation in your current job or a previous one in w...
Essentials of Business Communication (MindTap Course List)
Suppose a wave of negative animal spirits overruns the economy, and people become pessimistic about the future....
Principles of Macroeconomics (MindTap Course List)
A 1996 bill reforming the federal government's anti-poverty programs limited many welfare recipients to only tw...
Principles of Economics (MindTap Course List)
What are the advantages and disadvantages of using committees?
Foundations of Business (MindTap Course List)
The first four deviations from the mean in a sample of n = 5 reaction times were .3, .9, 1.0, and 1.3. What is ...
Probability and Statistics for Engineering and the Sciences
Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of 150...
Financial And Managerial Accounting
As a team, develop a set of criteria that you would use to evaluate the effectiveness of a mobile advertising c...
Principles of Information Systems (MindTap Course List)
Identify two additional tactics the organization might take to accelerate its move toward green computing?
Fundamentals of Information Systems
What is physical independence?
Database Systems: Design, Implementation, & Management
Imagine that you are starting a dating Web site to help match compatible couples. What sort of personal data mi...
Fundamentals of Information Systems
Describe the information the DBMS maintains in the system catalog. What are the generic names for three tables ...
A Guide to SQL
What is the primary value of a firewall?
Principles of Information Security (MindTap Course List)
How many records does the file contain? How many fields are there per record?
Database Systems: Design, Implementation, & Management
What do the terms organizational culture and organizational learning mean?
Principles of Information Systems (MindTap Course List)
Give examples of common civil engineering symbols.
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
In a hydrometer test, the results are as follows: Gs = 2.60, temperature of water = 24, and hydrometer reading ...
Fundamentals of Geotechnical Engineering (MindTap Course List)
What does SAE stand for?
Precision Machining Technology (MindTap Course List)
Solve the preceding problem for an aluminum plate with sx= 12,000 psi (tension). sy= -3000 psi (compression), d...
Mechanics of Materials (MindTap Course List)
True or False? A zero reading on an ohmmeter means the circuit or component is open.
Automotive Technology: A Systems Approach (MindTap Course List)
What is an unnormalized design, and how do you convert an unnormalized to 1NF? In your answer, specific pages a...
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
What is competitive disadvantage? Why has it emerged as a factor?
Management Of Information Security
a. A 25-ampere branch-circuit conductor is derated to 70%. It is important to provide proper overcurrent protec...
EBK ELECTRICAL WIRING RESIDENTIAL
Assume it costs 30 cents per ton per mile to operate a garbage truck and 10 cents per ton per mile to operate a...
Solid Waste Engineering
Which device is used to connect the load to the line in a solid-state relay intended to control a DC load?
Electric Motor Control
The radius and length of a steel cylinder are 40 mm and 110 mm, respectively. If the mass density of steel is 7...
International Edition---engineering Mechanics: Statics, 4th Edition
Repeat Problem 2.4 with the following data. 2.4 The following are the results of a sieve analysis. a. Determine...
Principles of Geotechnical Engineering (MindTap Course List)
A balloon is inflated from a negligible initial volume to a final volume of 200 cm3. How much work is done by t...
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Explain three types of pay systems used for technicians.
Automotive Technology
A WT741 bracket is connected to a W14159 column with 5 16 -inch E70 fillet welds as shown in Figure P8.5-5. Wha...
Steel Design (Activate Learning with these NEW titles from Engineering!)
thin client
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Determine the reactions at the supports for the structures shown. FIG.P3.22
Structural Analysis
Which part of a MAC address is unique to each manufacturer? a. The network identifier b. The OUI c. The device ...
Network+ Guide to Networks (MindTap Course List)
