Question

Problem 1. During January, Luxury Cruise Lines pays employee salaries of January are $153,000 for the employee portion of FICA, $333, income tax, and $30,000 for the employee portion of health insurance (payable The company incurs an additional $100,000 for federal and state unemployment to employer portion of health insurance. (10 pts) yee portion of FICA, $333,000 for federal income tax, $111,000 for state ployee salaries of $2 million. Withholdings in insurance (payable to Blue Cross/Blue Shield). state unemployment tax and $90,000 for the

Answer 1

January pay-roll Journal Entries
Account Title	Debit	Credit
1. Salaries expense	2000000
FICA tax payable		153000
Federal Income tax payable		333000
State Income tax payable		111000
Health insurance payable		30000
Salaries payable		1373000
(January salaries accrued)
2..Payroll tax expenses	343000
FICA tax payable -employer portion		153000
FUTA&SUTA expenses payable		100000
Health insurance payable		90000
(Employer Payroll tax expenses for January accrued)
3..Salaries payable	1373000
FICA tax payable(153000+153000)	306000
Federal Income tax payable	333000
State Income tax payable	111000
Health insurance payable(30000+90000)	120000
FUTA&SUTA expenses payable	100000
Cash		2343000
(Payment of salaries & Remittances of all withholdings)