Question

Caribbean Tours' total payroll for the month of January was $520,000. The following withholdings, fringe benefits, and payroll taxes apply:

   

Federal and state income tax withheld	$	52,000
Health insurance premiums paid by employer (payable to Blue Cross)		9,360
Contribution to retirement plan paid by employer (payable to Fidelity)		20,800
FICA tax rate (Social Security and Medicare)		7.65	%
Federal and state unemployment tax rate		6.20	%

Assume that none of the withholdings or payroll taxes has been paid by the end of January (record them as payables), and no employee's cumulative wages exceed the relevant wage bases.

Required:

1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.

Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Journal entry worksheet

• Record the employee salary expense, withholdings, and salaries payable.

Note: Enter debits before credits.

	Date General Journal Debit Credit January 31

Journal entry worksheet

• Record the employer-provided fringe benefits.

Note: Enter debits before credits.

	Date General Journal Debit Credit January 31

Journal entry worksheet

• Record the employer payroll taxes.

Note: Enter debits before credits.

	Date General Journal Debit Credit January 31

Answer 1

Soluton Arclount Hste sp Explartten Credet Date Delbtt Salarder pense 520000 31-Tan Inceme tay paal-le 52000 FICA Tay paalste C520000X6059/ Salaote paable 39180 428220 Salarter efperse 30l60 31 Jan Aclunts pyable uos) Acconts pabe (tdea) a360 R0800

१a-c t e9e FicA payate 7२०2० 31 Tan ১৭78০ Untmplagyment tay payable520000x 6-20y] 3२२५0