Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Caribbean Tours' total payroll for the month of January was $490,000. The following withholdings, fringe benefits, and payroll taxes apply: Federal and state income

image text in transcribed

Caribbean Tours' total payroll for the month of January was $490,000. The following withholdings, fringe benefits, and payroll taxes apply: Federal and state income tax withheld $49,000 Health insurance premiums paid by employer (payable to Blue Cross) Contribution to retirement plan paid by employer (payable to Fidelity) FICA tax rate (Social Security and Medicare) 8,820 19,600 7.65% Federal and state unemployment tax rate 6.20% Assume that none of the withholdings or payroll taxes has been paid by the end of January (record them as payables), and no employee's cumulative wages exceed the relevant wage bases. Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No 1 Date January 31 Salaries Expense Income Tax Payable 2 January 31 FICA Tax Payable 3 January 311 Salaries Payable General Journal Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting for Managers

Authors: Eric Noreen, Peter Brewer, Ray Garrison

2nd edition

978-0077403485, 77403487, 73527130, 978-0073527130

More Books

Students also viewed these Accounting questions

Question

How would you change the process to improve it?

Answered: 1 week ago