Question

QS 9-5 Recording employee payroll taxes LO P2 On January 15, the end of the first pay period of the year, North Company's 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%, $2,000 of federal income taxes, $429 of medical insurance deductions, and $180 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 salaries expense and related liabilities. View transaction list Journal entry worksheet Record the employee payroll for period. Not: Enter debit before credits Date Jan 15 General Journal Debit Credit

Answer 1

North Company Journal Enteries Date Particulars Jan-15 Sales Salaries Expense a/c Dr. TO FICA Medicare Taxes Payable To Social Sec. Taxes Payable To Employee Medical Insurance Payable To Employee union dues payable To Employee fed. Inc. taxes payable To Salaries payable 26000 x1.45% = 377; 26000 x 6.2% = 1612 Debit in $ Credit in $ 26000 377 1612 429 180 2000 21402 Perez Company Cost Salvage Value Amount subject to depletion Total units of Capacity Depetion per unit Units extracted and sold in period Depletion expense 2508800 280000 2228800 1400000 1.592 200000 318400 Event i Particulars Oremine a/c To Cash Dr. Debit in $ Credit in $ 2508800 2508800 2 Dr. 318400 Depletion Expense - ore mine a/c To Accum. Depletion - Ore Mine 318400 Organic Farming Straightline Depreciation = (Cost - Salvage Value) / Life of asset = ( 180000 - 24000 ) / 6 = 26000 Depreciation First Year = 26000 x 3/12 = 6500 Depreciation Second Year = 26000