Juan's Mexican Restaurant incurred salaries expense of $69,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemploymeny tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,500), life insurance (cost to the company, $420), and retirement benefits (cost to the company, 6% of salaries expense).

REQUIREMENTS:

1. Journalize Juan's expenses for employee benefits and for payroll taxes.

2. What was Juan's total expense for 2018 related to payroll?