Exercise 8-8 (Algo) Record payroll (L08-3) During January, Luxury Cruise Lines incurs employee salaries of $1.1 million. Withholdings in January are $84,150 for the employee portion of FICA, and $233,750 for employee federal and state. The company incurs an additional $68,200 for federal and state unemployment tax and $33,000 for the employer portion of health insurance (fringe benefits payable to Blue Cross Blue Shield). Required: 1. to 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 million should be entered as 5,000,000).) No 1 2 3 Date January 31 January 31 January 31 Answer is complete but not entirely correct. General Journal Salaries Expense Employee Income Tax Payable FICA Tax Payable Salaries Payable Salaries Expense Fringe Benefits Payable Payroll Tax Expense FICA Tax Payable Unemployment Tax Payable ✓ Debit 1,100,000✔ 0x 0X Credit 233,750 84,150✔ 0x 33,000 84,150 68,200✔
Exercise 8-8 (Algo) Record payroll (L08-3) During January, Luxury Cruise Lines incurs employee salaries of $1.1 million. Withholdings in January are $84,150 for the employee portion of FICA, and $233,750 for employee federal and state. The company incurs an additional $68,200 for federal and state unemployment tax and $33,000 for the employer portion of health insurance (fringe benefits payable to Blue Cross Blue Shield). Required: 1. to 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 million should be entered as 5,000,000).) No 1 2 3 Date January 31 January 31 January 31 Answer is complete but not entirely correct. General Journal Salaries Expense Employee Income Tax Payable FICA Tax Payable Salaries Payable Salaries Expense Fringe Benefits Payable Payroll Tax Expense FICA Tax Payable Unemployment Tax Payable ✓ Debit 1,100,000✔ 0x 0X Credit 233,750 84,150✔ 0x 33,000 84,150 68,200✔
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi,
I need help solving for the cells highlighted in red.
I do not know how to find these values.
Thank you for your help.
Transcribed Image Text:Exercise 8-8 (Algo) Record payroll (L08-3)
During January, Luxury Cruise Lines incurs employee salaries of $1.1 million. Withholdings in January are $84,150 for the employee
portion of FICA, and $233,750 for employee federal and state. The company incurs an additional $68,200 for federal and state
unemployment tax and $33,000 for the employer portion of health insurance (fringe benefits payable to Blue Cross Blue Shield).
Required:
1. to 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 million should be
entered as 5,000,000).)
No
1
2
3
Date
January 31
January 31
January 31
X Answer is complete but not entirely correct.
General Journal
Salaries Expense
Employee Income Tax Payable
FICA Tax Payable
Salaries Payable
Salaries Expense
Fringe Benefits Payable
Payroll Tax Expense
FICA Tax Payable
Unemployment Tax Payable
✓
✔
Debit
1,100,000
0x
0X
Credit
233,750✔
84,150✔
0x
33,000✔
84,150
68,200
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