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Caribbean Tours’ total payroll for the month of January was $500,000. The following withholdings, fringe benefits, and payroll taxes apply: |
| Federal and state income tax withheld | $ 50,000 |
| Health insurance premiums (Blue Cross) paid by employer | 9,000 |
| Contribution to retirement plan (Fidelity) paid by employer | 20,000 |
| FICA tax rate (Social Security and Medicare) | 7.65 % |
| Federal and state unemployment tax rate | 6.20 % |
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| Assume that none of the withholdings or payroll taxes has been paid by the end of January (record them as payables), and no employee’s cumulative wages exceed the relevant wage bases. |
references
4. value:
1.00 points
Problem 8-3A Part 1
| Required: | |
| 1. |
Record the employee salary expense, withholdings, and salaries payable. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | (Click to select)CashSalaries expenseAccounts payableFICA tax payableSalaries payable (to balance)Income tax payableUnemployment taxes payableAccounts receivable | ||
| (Click to select)Salaries expenseCashFICA tax payableSalaries payable (to balance)Accounts payableAccounts receivableIncome tax payableUnemployment taxes payable | |||
| (Click to select)Income tax payableSalaries payable (to balance)Unemployment taxes payableFICA tax payableAccounts receivableCashAccounts payableSalaries expense | |||
| (Click to select)Salaries expenseFICA tax payableAccounts receivableUnemployment taxes payableIncome tax payableSalaries payable (to balance)Accounts payableCash | |||
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check my workeBook Linkreferences
5. value:
1.00 points
Problem 8-3A Part 2
| 2. | Record the employer-provided fringe benefits. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | (Click to select)Accounts payable (to Blue Cross)Income tax payableFICA tax payableAccounts payable (to Fidelity)Salaries expense (fringe benefits)Salaries payableCashUnemployment tax payable | ||
| (Click to select)Income tax payableSalaries expense (fringe benefits)FICA tax payableUnemployment tax payableAccounts payable (to Fidelity)Salaries payableAccounts payable (to Blue Cross)Cash | |||
| (Click to select)Unemployment tax payableCashFICA tax payableAccounts payable (to Fidelity)Salaries payableIncome tax payableSalaries expense (fringe benefits)Accounts payable (to Blue Cross) | |||
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check my workeBook Linkreferences
6. value:
1.00 points
Problem 8-3A Part 3
| 3. | Record the employer payroll taxes. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 31 | (Click to select)Unemployment tax payableCashAccounts receivablePayroll tax expense (total)FICA tax payableSalaries expenseAccounts payableIncome tax payable | ||
| (Click to select)Salaries expenseFICA tax payableAccounts payableAccounts receivablePayroll tax expense (total)Unemployment tax payableIncome tax payableCash | |||
| (Click to select)FICA tax payableAccounts receivableCashPayroll tax expense (total)Accounts payableIncome tax payableUnemployment tax payableSalaries expense | |||
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