uring January, Luxury Cruise Lines incurs employee salaries of $2.8 million. Withholdings in January are $214,200 for the employee portion of FICA, $420,000 for federal income tax, $175,000 for state income tax, and $28,000 for the employee portion of health psurance (navable to Blue Cross Blue Shield. The comp incurcan additional $172 600 for føderal and stat amployment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During January, Luxury Cruise Lines incurs employee salaries of $2.8 million. Withholdings in January are $214,200 for the employee
portion of FICA, $420,000 for federal income tax, $175,000 for state income tax, and $28,000 for the employee portion of health
insurance (payable to Blue Cross Blue Shield). The company incurs an additional $173,600 for federal and state unemployment tax and
$84,000 for the employer portion of health insurance.
Required:
1.-3. 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).)
View transaction list
Journal entry worksheet
1
2
3
Record the employee salary expense, withholdings, and salaries payable.
Date
January 31
Note: Enter debits before credits.
General Journal
Debit
Credit
Transcribed Image Text:During January, Luxury Cruise Lines incurs employee salaries of $2.8 million. Withholdings in January are $214,200 for the employee portion of FICA, $420,000 for federal income tax, $175,000 for state income tax, and $28,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $173,600 for federal and state unemployment tax and $84,000 for the employer portion of health insurance. Required: 1.-3. 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).) View transaction list Journal entry worksheet 1 2 3 Record the employee salary expense, withholdings, and salaries payable. Date January 31 Note: Enter debits before credits. General Journal Debit Credit
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