Answer:
Dr Salaries expense 40,000
Cr FICA - Social security taxes payable 2,480
Cr FICA - medicare taxes payable 580
Cr Employee medical insurance deduction 593
Cr Union dues 230
Cr Salaries payable 33,017
Cr Federal income taxes payable 3,100
Explanation:
Preparation of the journal entry to record North Company’s January 15 salaries expense and related liabilities
Jan 15
Dr Salaries expense 40,000
Cr FICA - Social security taxes payable 2,480 (6.2%*40,000)
Cr FICA - medicare taxes payable 580
(1.45%*40,000)
Cr Employee medical insurance deduction 593
Cr Union dues 230
Cr Salaries payable 33,017
Cr Federal income taxes payable 3,100
Salaries payable is calculated as:
Salaries expense 40,000
Less: FICA - Social security taxes payable (2,480)
FICA - medicare taxes payable (580)
Employee medical insurance deduction (593)
Union dues (230)
Federal income taxes payable (3,100)
=$33,017