During January, Luxury Cruise Lines incurs employee salaries of $1.1 million. Withholdings in January are $84,150 for the employee portion of FICA, $165,000 for federal income tax, $68,750 for state income tax, and $11,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $68,200 for federal and state unemployment tax and $33,000 for the employer portion of health insurance. Required: 1., 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions.)

See the explanation below.

Explanation:

Details                                                         Dr ($)                 Cr ($)  

Salary expenses                                     1,100,000

Employee portion of FICA payable                                    84,150

Federal income tax payable                                             165,000

Employee's State income tax payable                              68,750

Employee portion of health ins. payable                            11,000

Net salaries payable                                                           771,100

To record gross salaries, withholding taxes and net salaries      

Employer portion of FICA expenses          84.150

Federal and state unemployment tax        68,200

Employer portion of health insurance        33,000

Employer portion of FICA payable                                     84,150

Fed. and state unemploymt tax payable                           68,200

Employer portion of health ins. payable                            33,000

To record employer's payroll taxes and other expenses              

Employee portion of FICA payable              84,150

Federal income tax payable                       165,000

State income tax payable                             68,750

Employee portion of health ins. payable      11,000

Net salaries payable                                     771,100

Employer portion of FICA payable               84,150

Fed. and state unemploymt tax payable     68,200

Employer portion of health ins. payable      33,000

Cash                                                                                  1,285,350

To record payment of payroll liabilities and other expenses        

answer(d) the growth of consumption is likely to remain sluggish even as the economy begins to recover.;