During January, Luxury Cruise Lines incurs employee salaries of $1.2 million. Withholdings in January are $91,800 for the employee portion of FICA, $180,000 for federal income tax, $75,000 for state income tax, and $12,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $74,400 for federal and state unemployment tax and $36,000 for the employer portion of health insurance.
Required:
1. Record the necessary entries in the Journal Entry Worksheet .
2. Record the employee salary expense, withholdong and salaries payable.
3. Record the employer provided fringe benefits.
4. Record the employer payroll taxes.