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

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)