Question

Super Inc. engaged in the following transactions during 2019:

January 10th: Purchased $20,000 2/10, n/30 merchandise on credit

January 19th: Paid for the merchandise purchased on January 10th

May 1st: Borrowed $200,000 on a 9-month, 6% interest-bearing note

May 15th: Received a $6,000 deposit from a customer for custom-made cabinets to be manufactured and delivered next month. The total price for the cabinets is $25,000

June 30th: Remitted quarterly installments of FICA and income tax withholdings of $150,000 and $345,000, respectively. The payroll entries, including the employer's payroll taxes, have already been recorded

July 15th: Super Inc. delivered the cabinets

December 31st: Recorded accrued interest on the note payable

Prepare journal entries for each of these transactions

Answer 1

Date	Account title and explanation	debit	credit
Jan 10	Inventory	$20,000
	Accounts payable		$20,000
	[To record purchase of inventory on account]
Jan19	Accounts payable	$20,000
	Inventory($20000*2%)		$400
	cash		$19,600
	[To record cash paid for account payable]
Mar1	cash	$200,000
	Accounts payable		$200,000
	[To record cash borrowed in exchange of notes]
Mar15	cash	$6,000
	Unearned revenue		$6,000
	[To record cash received in advance from customers]
June30	FICA tax payable	$150,000
	Income tax with holdings	$345,000
	Cash		$495,000
	[To record payment of taxes]
June15	Cash ($25000-$6000)	$19,000
	Unearned revenue	$6,000
	Sales revenue		$25,000
	[To record sales revenue]
Dec31	Interest expense ($200000*6%*8/12)	$8,000
	Interest payable		$8,000
	[To record accrued interest payable]