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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
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 to Blue 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) Journal entry worksheet Record the employee salary expense, withholdings, and salaries payable. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear View general journal Journal entry worksheet Record the employer-provided fringe benefits. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal Journal entry worksheet Journal entry worksheet
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