During December, Luxury Cruise Lines incurs employee salaries of $3 million. Withholdings in December are $229,500 for the employee portion of FICA, $450,000 for federal income tax, and $187,500 for state income tax. The company incurs an additional $186,000 for federal and state unemployment tax. These costs and expenses will be paid in January. Required: Determine the amount of accrued payroll and benefit costs Luxury Cruise Lines will report in its December balance sheet. Note: Enter your answers in dollars, not millions (i.e., $5.5 million should be entered as $5,500,000). Accrued payroll and benefit costs
During December, Luxury Cruise Lines incurs employee salaries of $3 million. Withholdings in December are $229,500 for the employee portion of FICA, $450,000 for federal income tax, and $187,500 for state income tax. The company incurs an additional $186,000 for federal and state unemployment tax. These costs and expenses will be paid in January. Required: Determine the amount of accrued payroll and benefit costs Luxury Cruise Lines will report in its December balance sheet. Note: Enter your answers in dollars, not millions (i.e., $5.5 million should be entered as $5,500,000). Accrued payroll and benefit costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:During December, Luxury Cruise Lines incurs employee salaries of $3 million. Withholdings in December are $229,500 for the
employee portion of FICA, $450,000 for federal income tax, and $187,500 for state income tax. The company incurs an additional
$186,000 for federal and state unemployment tax. These costs and expenses will be paid in January.
Required:
Determine the amount of accrued payroll and benefit costs Luxury Cruise Lines will report in its December balance sheet.
Note: Enter your answers in dollars, not millions (i.e., $5.5 million should be entered as $5,500,000).
Accrued payroll and benefit costs
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