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 $26,000 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $2,500 of federal income taxes, $648 of medical insurance deductions, and $170 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal entry to record North Company's January 15 (employee) payroll expenses and liabilities Answer is not complete. Date Jan 15 No General Journal Debit Credit Sales salaries expense FICA-Social sec. taxes payable FICA-Medicare taxes payable Income taxes expense Employee life insurance payable 26,00 17 Employee union dues payable Salaries payable

Answer 1

January 15:

Dr. Sales salaries expense: 26,000

Cr. FICA- Social security taxes payable: 1,690

Cr. FICA- Medicare taxes payable: 406

Cr. federal income taxes payable: 2500

Cr. Employment medical insurance payable: 648

Cr. Employee union dues payable: 170

Cr. Salaries Payable: 20,586

Step-by-step explanation:

January 15.

Dr. Sales salaries expense: 26,000

Cr. FICA- Social security taxes payable: 1,690

Cr. FICA- Medicare taxes payable: 406

Cr. federal income taxes payable: 2500

Cr. Employment medical insurance payable: 648

Cr. Employee union dues payable: 170

Cr. Salaries Payable: 20,586

WORKING :

FICA - Social security tax = 0.065 × 26000 = $1690

FICA- Medicare taxes payable: 0.0145×26000 = 377

Answer 2

Step-by-step explanation:

Debit :

Sales salaries payable $26,000

Credit :

FICA- Social security taxes payable: 1,612

FICA- Medicare taxes payable: 377

Federal income taxes payable: 2,500

Employment medical insurance payable: 648

Employee union dues payable: 170

Salaries Payable: 20,693

Social security taxes = 26,000 x 6.2%

Medicare taxes = 26,000 x 1.45%