Ricardo’s Mexican Restaurants incurred salary expense of $65,000 for 2012

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Ricardo’s Mexican Restaurants incurred salary expense of $65,000 for 2012. The payroll expense includes employer FICA tax of 7.65%, in addition to state unemploy- ment tax of 5.4% and federal unemployment tax of 0.8%. Of the total salaries, $17,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,060), life insurance (cost to the company, $350), and retirement benefits (cost to the company, 7% of salary expense).

Requirement

1. Journalize Ricardo’s expenses for employee benefits and for payroll taxes. Explanations are not required.