Answer:
a. The journal entries for the employee salary expense, withholdings, and salaries payable are the following:
Debit Credit
Salaries expenses account $2,100,000
Federal Income tax payable $315,000
State income tax payable $131,250
FICA social security tax payable $160,650
Blue shield payable $21,000
Cash account $1.472.1000
b. The journal entries for the employer-provided fringe benefits is the following:
Debit Credit
Salaries expenses (Fringe benefit account) $63,000
Blue shield payable $63,000
c. The journal entries for the employer payroll taxes is the following:
Debit Credit
Payroll Tax expense account $290,850
FICA Social security tax payable $160,650
Unemployment tax payable $130,200
Explanation:
a. The journal entries for the employee salary expense, withholdings, and salaries payable are the following:
Debit Credit
Salaries expenses account $2,100,000
Federal Income tax payable $315,000
State income tax payable $131,250
FICA social security tax payable $160,650
Blue shield payable $21,000
Cash account $1.472.1000
b. The journal entries for the employer-provided fringe benefits is the following:
Debit Credit
Salaries expenses (Fringe benefit account) $63,000
Blue shield payable $63,000
c. The journal entries for the employer payroll taxes is the following:
Debit Credit
Payroll Tax expense account $290,850
FICA Social security tax payable $160,650
Unemployment tax payable $130,200
