2. Record the employer-provided fringe benefits.3. Record the employer payroll taxes. Exercise 8-8 (Algo) Record payroll (LO8-3)During January, Luxury Cruise Lines incurs employee salaries of $2.1 million. Withholdings in January are $160,650 for the employeeportion of FICA, and $446,250 for employee federal and state. The company incurs an additional $130,200 for federal and stateunemployment tax and $63,000 for the employer portion of health insurance (fringe benefits payable to Blue Cross Blue Shield).Required:1. to 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event,select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 million should beentered as 5,000,000).)View transaction listJournal entry worksheet123Record the employee salary expense, withholdings, and salaries payable.DateJanuary 31Note: Enter debits before credits.General Journal< PrevDebitCredit2 of 6>Next >

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: Exercise 8-8 (Algo) Record payroll…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 32E

See similar textbooks

Related questions

Question

2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes.

Exercise 8-8 (Algo) Record payroll (LO8-3)
During January, Luxury Cruise Lines incurs employee salaries of $2.1 million. Withholdings in January are $160,650 for the employee
portion of FICA, and $446,250 for employee federal and state. The company incurs an additional $130,200 for federal and state
unemployment tax and $63,000 for the employer portion of health insurance (fringe benefits payable to Blue Cross Blue Shield).
Required:
1. to 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 million should be
entered as 5,000,000).)
View transaction list
Journal entry worksheet
1
2
3
Record the employee salary expense, withholdings, and salaries payable.
Date
January 31
Note: Enter debits before credits.
General Journal
< Prev
Debit
Credit
2 of 6
>
Next >

Definition Definition Benefits in addition to compensation that companies give to their employees. Fringe benefits can boost morale and productivity and keep employees motivated. Companies often use fringe benefits as a competitive advantage to recruit and retain employees. Examples of fringe benefits include pensions, vacation time, tuition reimbursement, free or subsidized meals, and gym memberships.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions