On January 15, the end of the first biweekly pay period of the year, North Compa
ID: 2466632 • Letter: O
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 $32,000 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%. $3,000 of federal income taxes. $772 of medical insurance deductions, and $260 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.Explanation / Answer
date account titles & explanation debit credit 15-Jan wages and salaries 32000 FICA social security taxes exense 1984 FICA medicare taxes expense 454 FICA social security taxes payable 3968 (includes employer and employee contribution} FICA medicare taxes payable 908 (includes employer and employee contribution} Federal income tax payable 3000 Medical insurance payable 772 Union dues 260 wages & salaries payable 25530