Recording Various Liabilities Grove Hardware had the following transactions that produced liabilities during the year: Purchased merchandise on credit for $50,000. ( Note: Assume a periodic inventory...

Recording Various Liabilities

Grove Hardware had the following transactions that produced liabilities during the year:

1. Purchased merchandise on credit for $50,000. (Note: Assume a periodic inventory system.)


2. Year-end wages of $22,000 were incurred, but not paid. Related federal income taxes of $2,200, Social Security of $1,364 (employee portion), and Medicare taxes of $320 were withheld from employees.


3. Year-end estimated income taxes payable, but unpaid, for the year were $37,350.


4. Sold merchandise on account for $2,160, including state sales taxes of $90. (Note: Assume a periodic inventory system.)


5. Employer’s share of Social Security and Medicare taxes for the period were $1,364 and $320, respectively.


6. Borrowed cash under a 120-day, 7%, $20,000 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.