Question

During January, a company incurs employee salaries of $1.8 million. Withholdings in January are $137,700 for the employee portion of FICA, $270,000 for federal income tax, $112,500 for state income tax, and $18,000 for the employee portion of health insurance (payable to Company B). The company incurs an additional $111,600 for federal and state unemployment tax and $54,000 for the employer portion of health insurance.

Required:

1.-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 should be entered as 5,000,000).)

Answer 1

Journal Entry:

Date	Account Name	Debit	Credit
1.	Salaries Expense	$ 1,800,000
	To FICA Tax Payable		$ 137,700
	To Federal Income Tax Payable		$270,000
	To State Income Tax Payable		$112,500
	To Health Insurance Payable		$18000
	To Salaries Payable		$1,261,800
2.	Salaries Expense	$54,000
	To.Health Insurance payable		$54,000
	(Record the employer-provided fringe benefits
3	Payroll Tax Expense	$249,400
	To FICA Taxes Payable		$137,700
	To Federal and state tax payable		$111,600
	( Record the employer payroll taxes)