Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Caribbean Tours' total payroll for the month of January was $480,000. The following withholdings, fringe benefits, and payroll taxes apply: warded $48,000 8,648 Federal and
Caribbean Tours' total payroll for the month of January was $480,000. The following withholdings, fringe benefits, and payroll taxes apply: warded $48,000 8,648 Federal and state income tax withheld 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) Federal and state unemployment tax rate 29,200 7.65 6.28% 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.) Credit NO General Journal Date Debit 480,000 January 31 awarded Salaries Expense Income Tax Payable FICA Tax Payable Salaries Payable 48,000 36,720 395,280 pred 27.840 January 31 Salaries Expense Accounts Payable (Blue Cross) Accounts Payable (Fidelity) OOO OOO OOOO 8,640 19.200 erences 6.960 January 31 Payroll Tax Expense FICA Tax Payable Unemployment Tax Payable 36.720 29.760
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started