Enviro company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. on the issue date, the annual market rate for these bonds is 5%, which implies a selling price of 123 ⅜. the straight-line method is used to allocate interest expense.

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 > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.