for the month of January was $580,000. The following withholdings, fringe benefi

Question

for the month of January was $580,000. The following withholdings, fringe benefits, and payroll taxes apply s 58,000 10.440 23,200 Federal and state income tax withheld Health insurance premiums paid by employer (payable to Blue Cross) Contribution to retirement plan paid by employer (payable to Fidelity) FICA tax rate (Social Security and Medicare) Federal and state unemployment tax rate 7.65 % 6.20 % Assume that none of the withholdings or payrolltaxes 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.) View transaction list Journal entry worksheet 3 Record the employer-provided fringe benefits. Note: Enter debits before credits Date General Journal Debit Credit January 31 Record entry Clear Vieaw

Explanation / Answer

Date General Journal Debit Credit January 31 Salaries expense $580,000 Income tax payable $58,000 FICA tax payable($580,000 × 0.0765) $44,370 Salaries payable $477,630 January 31 Salaries expense $33,640 Accounts payable (Blue Cross) $10,440 Accounts payable (Fidelity) $23,200 January 31 Payroll tax expense $80,330 FICA tax payable $44,370 Unemployment tax payable($580,000 × 0.062) $35,960

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