Question

On January 15, the end of the first biweekly pay period of the year, North Company's payroll register showed that its employees earned $30,000 of sales salaries. Withholdings from the employees's salaries include FICA Social Security taxes at the rate of 6.2%. FICA Medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $484 of medical insurance deductions, and $260 of union dues. No employee earned more than $7000 in this first period. Prepare the journal entry to record North Company's January 15 (employee) payroll expenses and liabilities.

Answer 1

Jan 15

Dr Salaries expense 30,000

Cr FICA - Social sec taxes payable 1,860

Cr FICA - medicare taxes payable 435

Cr Employee medical insurance payable 484

Cr Employee union dues payable 260

Cr Salaries payable 23,961

Cr Federal income taxes payable 3,000

Step-by-step explanation:

General journal debit credit

Jan 15

Dr Salaries expense 30,000

Cr FICA - Social sec taxes payable (30,000*6.2%) 1,860

Cr FICA - medicare taxes payable

(30,000*1.45%) 435

Cr Employee medical insurance payable 484

Cr Employee union dues payable 260

Cr Salaries payable 23,961

Cr Federal income taxes payable 3,000