Answer: Please see the explanation column
Explanation:
Journal entry to record North Company’s salaries expense and related liabilities.
Date Particulars Debit Credit
Jan, 15 Sales salaries expense $26,000
To FICA Social Security taxes
payable at 6.2% $1,612
To FICA Medicare taxes
payable at 1.45% $377
To federal income taxes payable $2,000
To employee medical insurance payable $429
To employee union dues payable $180
Sales Salaries Payable $21.402
Working :
FICA Social Security taxes = 6.2% x $26,000 = $1,612
FICA Medicare taxes = 1.45% x 26,000 = $377
Salary payable =Sales salaries expense -(FICA Social Security taxes payable + FICA Medicare taxes payable + federal income taxes payable+medical insurance payable +employee union dues payable ) = 26,000 - (1612+377+2000+429+180)=$21,402.
