Ch 8 In class SOLUTIONS.doc

Ch 8 In class SOLUTIONS.doc - ACC203 Problems-1 Part A...

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ACC203 f43ae65490f9e52337cfbffccfd3c35b7051b694.doc Problems - 1 - Part A: recording payroll During January, Deluxe Printing pays employee salaries of $1 million. Withholdings in January are $76,500 for the employee portion of FICA, $210,000 for federal and state income tax, and $40,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $38,000 for federal and state unemployment tax and $30,000 for the employer portion of health insurance. 1. Record the employee salary expense, withholdings, and salaries payable. January 31 Debit Credit Salaries Expense 1,000,000 Income Tax Payable 210,000 FICA Tax Payable 76,500 Accounts Payable (Blue Cross/Blue Shield) 40,000 Salaries Payable (to balance) 673,500 (Employee salary expense and withholdings) 2. Record the employer-provided fringe benefits. January 31 Salaries Expense (fringe benefits) 30,000 Accounts Payable (Blue Cross/Blue Shield) 30,000 (Employer-provided fringe benefits) 3. Record the employer payroll taxes.
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