Exercise 8-8 (Algo) Record payroll (LO8-3) During January, Luxury Cruise Lines incurs employee salaries of $2.1 million. Withholdings in January are $160,650 for the employee portion of FICA, and $446,250 for employee federal and state. The company incurs an additional $130,200 for federal and state unemployment tax and $63,000 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).) View transaction list
Exercise 8-8 (Algo) Record payroll (LO8-3) During January, Luxury Cruise Lines incurs employee salaries of $2.1 million. Withholdings in January are $160,650 for the employee portion of FICA, and $446,250 for employee federal and state. The company incurs an additional $130,200 for federal and state unemployment tax and $63,000 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).) View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.
![Exercise 8-8 (Algo) Record payroll (LO8-3)
During January, Luxury Cruise Lines incurs employee salaries of $2.1 million. Withholdings in January are $160,650 for the employee
portion of FICA, and $446,250 for employee federal and state. The company incurs an additional $130,200 for federal and state
unemployment tax and $63,000 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).)
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
< Prev
Debit
Credit
2 of 6
>
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc7c5ec4-6458-48ac-b580-7110d1dd08da%2F6233a86b-78a3-445f-b037-be18dfd2ce87%2F7wny8i8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-8 (Algo) Record payroll (LO8-3)
During January, Luxury Cruise Lines incurs employee salaries of $2.1 million. Withholdings in January are $160,650 for the employee
portion of FICA, and $446,250 for employee federal and state. The company incurs an additional $130,200 for federal and state
unemployment tax and $63,000 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).)
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
< Prev
Debit
Credit
2 of 6
>
Next >
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