Journalize the following items below.

a. Mary works for Madison Co. For the month ended April 30, she earned $5,000. FICA taxes are 7.65%, state income taxes to be withheld totaled $180.00. Federal income taxes withheld totaled $265.00. Her health insurance is $15. Mary also contributes 8% to her retirement account..

Prepare the journal entry to record Mary’s earnings. 

b. Madison Co. pays $250 per month for Mary’s health insurance, $20 per month for disability insurance for Mary, and they match Mary’s contribution to her retirement account. Assume Mary has not yet earned $7000 and thus Madison owes unemployment taxes on all of her earnings. 

Prepare the journal entry to record Madison Co.’s employee benefits expense and payroll tax expenses.