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 $50,000 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%, $2,300 of federal income taxes, $1,175 of medical insurance deductions, and $220 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.

On January 15, the end of the first biweekly pay period of the year, North Company's payroll register showed that its employees earned $50,000 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%, $2,300 of federal income taxes, $1,175 of medical insurance deductions, and $220 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. View transaction list Journal entry worksheet Record the employee payroll for period. Note: Enter debits before credits. General Journal Debit Credit Date Jan 15

Answer 1

		Debit	Credit
Jan 15	Sales salaries expense	50000
	FICA- Social sec. taxes payable		3100	=50000*6.2%
	FICA- Medicare taxes payable		725	=50000*1.45%
	Employee medical insurance payable		1175
	Employee union dues payable		220
	Employee fed. inc. taxes payable		2300
	Salaries payable		42480