On January 15, the end of the first pay period of the year, North Company’s 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, $772.50 of medical insurance deductions, and $120 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 salaries expense and related liabilities. (Round amounts to cents.)

Question

On January 15, the end of the first pay period of the year, North Company’s 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, $772.50 of medical insurance
deductions, and $120 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 salaries expense and related liabilities. (Round
amounts to cents.)

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Accounting Principles

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Although Sahra now pays Stone & Co Accounting Specialists Pty Ltd to manage the accounting funct...

A: Financial Accounting  It is that branch of accounting which is associated with recording, identifyi...

Q: Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life...

A: Double declining balance method:

Q: An employee earned $50,000 during the year. FICA tax for Social Security is 6.2% and FICA tax for Me...

A: FICA tax is contributed both the employees and the employer with 6.2% of social security tax till th...

Q: On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United Leasing under...

A: This is a the case of Leasing under a finance lease where Lease payments are made annually. 

Q: Assume that Cane expects to produce and sell 80,000 Alphas during the current year. One of Cane’ssal...

A: Since the costing information is not given, my answer would be based on revenue. 

Q: Q.2 Alexander Company purchased a piece of equipment for $12,000 and depreciated it for three years ...

A: Depreciation is reduction in the value of assets over the time due to normal wear and tear. There ar...

Q: (Learning Objectives 1, 2, 3: Measure and account for plant assets; distinguish acapital expenditure...

A: Prepare proper account: The result will be:  

Q: Whyville Corporation obtained its charter from the state in January that authorized 500,000 sharesof...

A: 1. Indicate the effects of each transaction on the accounting equation. Working notes:

Q: Alexander Company purchased a piece of equipment for $12,000 and depreciated it for three years over...

A: Annual Depreciation  = (Cost of the assets - Residual value) / Expected life of the assets

Q: For each of the following situations, indicate whether itrepresents an accounting error and explain ...

A: Answer:   Accounting error.

Q: Which of the following is not related to ethical requirements of auditors?a. Due care.b. Independenc...

A: As per the ethical requirement of an auditor it is imperative that the auditor's exercises due care,...

Q: Sunland Inc. began operations in January 2018 and reported the following results for each of its 3 y...

A: Book value of common stock: It is the face value of common stock available to the shareholders.

Q: BSO, Inc. has current assets of $1,000,000 and current liabilities of $500,000, resulting in a curre...

A: b.  

Q: Jeff Heun, president of Pina Always, agrees to construct a concrete cart path at Dakota Golf Club. P...

A: Transaction price:   Transaction price is the amount of consideration that is estimated by the compa...

Q: On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreem...

A: The journal entries: In the books of Winn Heat Transfer Journal Entries Date Particulars LF A...

Q: At the beginning of the month, supplies were $5,000. During the month, $7,000 ofsupplies were purcha...

A: The adjusting entries with respective of supplies would be to account for the supplies expenses and ...

Q: Identify whether a debit or credit results in the indicated change for each of the following account...

A: An account is a record that is maintained to chronicle the monetary transactions related tovarious s...

Q: Text World, Inc., reported sales revenue of $450,000, net income of $54,000, andaverage total assets...

A: Return on assets = Net income / Average total assets where, Average total assets = (Beginning total ...

Q: Which of the following is not one of the four basic financial statements?a. The balance sheetb. The ...

A: Basic financial statements are: Balance Sheet Income Statement Statement of Cash Flows Statement of...

Q: How are the substantive procedures performed by the audit team related to the objective of MUS?

A:  

Q: Roswell Corporation reported the following data:Dividends.................. $ 5,000Purchase returns....

A: Gross profit percentage = (Gross profit / Sales revenue) x 100 where, Gross profit = Sales revenue -...

Q: Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2018...

A: Goodwill = Fair value of consideration transferred - Fair value of net identifiable assets Gain on b...

Q: On January 2, 2020, Ayayai Company purchases a call option for $310 on Merchant common stock. The ca...

A: Journal entries are recording of the transaction in the accounting journal in a chronological order....

Q: The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provi...

A: Given below are the income statements variance:

Q: Assume you are employed as the chief financial officer of a corporation and are responsible for prep...

A: Financial statements: Financial statements are condensed summary of transactions communicated in the...

Q: Lastly the journal entry worksheet is needed Req 2c

A: Journal entries are recording of the transaction in the accounting journal in a chronological order....

Q: Internal control procedures are important in every business, but at what stage in the development of...

A: Internal Control:   It is a process of assuring the effectiveness and efficiency of the objectives o...

Q: Texas Oil Company (TOC) paid $3,000,000 for an oil reserve estimated to hold 50,000 barrels ofoil. O...

A: Depletion method is followed by the companies that have assets like natural resources like oil, gas,...

Q: A company has a profit margin of 10% and reports net sales of $4,000,000 and average total assets of...

A: Return on assets = Net income / Average total assets where, Average total assets = (Beginning total ...

Q: Attestation Evaluation Criteria. The local high school experienced trouble two years ago.Its graduat...

A:  

Q: The fraud triangle asserts that the following three factors must exist for a person to commit fraud....

A: Given situation is: A worker sees other employees regularly take inventory for personal use.

Q: Universal Sports Supply began the year with an accounts receivable balance of $200,000 and a year-en...

A: Accounts receivable turnover analyzes the number of times accounts receivables is collected and conv...

Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid r...

A: Cash Method: The cash method is an accounting system that records revenue when actual cash is receiv...

Q: Good morning What is the breakeven point in unit, assuming a product's selling price is $100 fixed c...

A: Compute the CPU as follows:  

Q: On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease...

A: Definition: Journal entry: Journal entry is a set of economic events which can be measured in moneta...

Q: On May 5, Johnson Plumbing receives a phone call from a customer needing a new water heater and sche...

A: As per the revenue recognition principle, revenue is recognized on completion of service to the cust...

Q: The following selected transactions relate to investment activities of Ornamental Insulation Corpora...

A: Bonds: When the companies are required to be the raise of the funds then the company  which are issu...

Q: The stockholders’ equity section of The Seventies Shop is presented here.THE SEVENTIES SHOP Balance ...

A: Hi student Since there are multiple subparts in the question, we will answer only first question. 

Q: Dwight’s Trophy Shop is considering the following accounting changes:a. Increase the allowance for u...

A: Click to see the answer

Q: I have attached the question in jpeg, please refer to it. My question is, what is the balance of Cas...

A: Calculation of transactions till March 10:

Q: Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid r...

A: The journals are: In the books of Sweet Catering Journals Date Particulars LF Amt(Dr.)($) Amt...

Q: Match each of the numbered descriptions 1 through 7 with the term or phrase it best reflects. Indica...

A: Given descriptions are: 1. Requires the SEC to pay whistleblowers.2. Examines whether financial stat...

Q: The issuance of common stock is classified in the statement of cash flows as a(n) a. Operating activ...

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and ca...

Q: Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the followi...

A: The inventory turnover ratio is computed by dividing the cost of goods sold by average inventories.A...