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Exercise 8-8 (Algo) Record payroll (LO8-3) 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).)

Exercise 8-8 (Algo) Record payroll (LO8-3) 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).)

FINANCIAL ACCOUNTING
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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Exercise 8-8 (Algo) Record payroll (LO8-3) 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 3333 ✓ ✓ 333 Debit 1,100,000✔ 33,000✔ 152,350 Credit 233,750✔ 84,150✔ 697,950 X 33,000✔ 84,150✔ 68,200✔
Transcribed Image Text:Exercise 8-8 (Algo) Record payroll (LO8-3) 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 3333 ✓ ✓ 333 Debit 1,100,000✔ 33,000✔ 152,350 Credit 233,750✔ 84,150✔ 697,950 X 33,000✔ 84,150✔ 68,200✔
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