Chapter 11, Problem 5QS

Recording employee payroll taxes
P2
On January 15, the end of the ?rst biweekly pay period of the year, North Company’s payroll register showed that its employees earned $35,000 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%, $6,500 of federal income taxes, $77,250 of medical insurance deductions, and $120 of union dues. No employee earned more than $7,000 in this ?rst period. Prepare the journal entry to record North Company’s January 15 (employee) payroll expenses and liabilities. (Round amounts to cents)