During January, Luxury Cruise Lines incurs employee salaries of $2.8 million. Withholdings in January are $214,200 for the employeeportion of FICA, $420,000 for federal income tax, $175,000 for state income tax, and $28,000 for the employee portion of healthinsurance (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 enteredas 5,000,000).)View transaction listJournal entry worksheet123Record the employee salary expense, withholdings, and salaries payable.DateJanuary 31Note: Enter debits before credits.General JournalDebitCredit

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

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

Section: Chapter Questions

Problem 1Q

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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. a. b. c. Gross Pay through August 31 $ 6,400 2,700 133,300 Gross Pay for September $1,700 2,800 9,900 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answer in the tabs below. Employer Payroll taxes Payroll Taxes General Journal Expense Assuming situation (a), compute the payroll taxes expense. (Round your answers to 2 decimal places.) September earnings subject to tax Tax Rate
[The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,000 $ 1,500 b. 2,000 2,100 c. 132,900 9,500 Exercise 11-9 (Algo) Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities. Record the employer's September 30 payroll taxes expense and its related liabilities. Note: Enter debits before credits. Date General Journal Debit Credit September 30 Payroll taxes expense FICA—Social security taxes payable FICA—Medicare taxes payable Federal…
During January, Luxury Cruise Lines incurs employee salaries of $2.3 million. Withholdings in January are $175,950 for the employee portion of FICA, $345,000 for federal income tax, $143,750 for state income tax, and $23,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $142,600 for federal and state unemployment tax and $69,000 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).) 1 Record the employee salary expense, withholdings, and salaries payable. 2 Record the employer-provided fringe benefits. 3 Record the employer payroll taxes. Date General Journal Debit Credit January 31
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