During January, Luxury Cruise Lines incurs employee salaries of $1.3 million. Wi

Question

During January, Luxury Cruise Lines incurs employee salaries of $1.3 million. Withholdings in January are $99,450 for the employee portion of FICA, $195,000 for federal income tax, $81,250 for state income tax, and $13,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $80,600 for federal and state unemployment tax and $39,000 for the employer portion of health insurance.

Required:

1., 2.& 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)

Explanation / Answer

31ST JANUARY SALARY EXPENSES $1300000 INCOME TAX PAYABLE $276250 FICA TAX PAYABLE $99450 ACCOUNTS PAYABLE $13000 SALARIES PAYABLE $911300 31ST JANUARY SALARIES EXPENSES $39000 ACCOUNTS PAYABLE $39000 31ST JANUARY PAYROLL TAX EXPENSES $180050     FICA TAX PAYABLE $99450 STATE UNEMPLOYMENT TAX $80600

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