Ask Question
16 October, 13:06

During January, Luxury Cruise Lines incurs employee salaries of $1.1 million. Withholdings in January are $84,150 for the employee portion of FICA, $165,000 for federal income tax, $68,750 for state income tax, and $11,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $68,200 for federal and state unemployment tax and $33,000 for the employer portion of health insurance. Record the necessary entries in the Journal Entry

+5
Answers (1)
  1. 16 October, 13:19
    0
    The journal entries are shown below:

    1. Salary expense A/c Dr $1,100,000

    To income tax payable A/c $233,750

    To FICA Tax payable A/c $84,150

    To Accounts payable A/c $11,000

    To Salaries payable A/c $771,100

    (Being the expenses and Withholding are recorded and the remaining balance is credited to salary payable account)

    2. Salary expense A/c Dr $33,000

    To Accounts payable A/c $33,000

    (Being the employer portion of health insurance is recorded)

    3. Payroll tax expense A/c Dr $152,350

    To FICA Tax payable A/c $84,150

    To Unemployment tax payable A/c $68,200

    (Being payroll tax expense is recorded)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “During January, Luxury Cruise Lines incurs employee salaries of $1.1 million. Withholdings in January are $84,150 for the employee portion ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers