Question

During January, Luxury Cruise Lines incurs employee salaries of $2.2 million. Withholdings in January are $168,300 for the employee portion of FICA, $330,000 for federal income tax, $137,500 for state income tax, and $22,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $136,400 for federal and state unemployment tax and $66,000 for the employer portion of health insurance.

Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular 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).)

a. Record the employee salary expense, withholdings, and salaries payable.

options for general journal - No Journal Entry Required, Accounts Payable, Accounts Receivable, Advertising Expense, Allowance for Uncollectible Accounts, Bad Debt Expense, Cash, Common Stock, Contingent Liability, Deferred Revenue, Delivery Expense, FICA Tax Payable, Fringe Benefits Payable, Gain, Income Tax Expense, Income Tax Payable, Insurance Expense, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss, Notes Payable, Notes Receivable, Payroll Tax Expense, Property Tax Expense, Rent Expense, Repairs and Maintenance Expense, Retained Earnings, Salaries Expense, Salaries Payable, Sales Revenue, Sales Tax Payable, Service Fee Expense, Service Revenue, Supplies, Supplies Expense, Unemployment Tax Payable, Utilities Expense, Utilities Payable, Warranty Expense, Warranty Liability

b. Record the employer-provided fringe benefits.

c. Record the employer payroll taxes.

Answer 1