During January, Luxury Cruise Lines incurs employee salaries of $2.5 million. Withholdings in January are $191,250 for
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Question:
During January, Luxury Cruise Lines incurs employee salaries of $2.5 million. Withholdings in January are $191,250 for the employee portion of FICA, $375,000 for federal income tax, $156,250 for state income tax, and $25,000 for the employee portion of health insurance (payable toBlue Cross/Blue Shield). The company incurs an additional $155,000 for federal and state unemployment tax and $75,000 for the employer portion of health insurance.
Required:
- 1., 2.& 3.Record the necessary entries in the Journal Entry Worksheet below. Record the employee salary expense, withholdings, and salaries payable.
- Record the employer-provided fringe benefits.
- Record the employer payroll taxes.
Posted Date: