The payroll related information for Smart Packers is provided below. The company has a total payroll for the month of January of $100,000 for its 30 employees. Use the information provided to answer the following questions. (Assume that none of the employees earn more than $7,000 in January.) Federal and state income tax withheld $20,000Health insurance premiums paid by employer $10,000Contribution to retirement plan paid by employer $15,000FICA tax rate (Social Security and Medicare) 7.65%Federal and state unemployment tax rate 6.20%Knowledge Check 01What is the amount of fringe benefits for the month?Multiple Choice$25,000$15,000$20,000$10,000

A company has total payments for the month of March for its 20 employees of $100,000. The FICA tax rate (Social Security and Medicare) is 7.65%. What is the total amount due to the government for FICA taxes?Multiple Choice$13,850$7,650$27,650$15,300

How much Medicare Tax would an individual working for a large corporation and making an annual salary of $67,800 pay?$578.90$1966.20$983.10$678.00

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). The company incurs an additional $38,000 for federal and state unemployment tax, and $30,000 for the employer portion of health insurance.         Required:1., 2. & 3. Record the following transactions for Deluxe Printing. (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.)

On February 3, Smart Company sold merchandise in the amount of $4,500 to Kennedy Company, with credit terms of 1/10, n/30. The cost of the items sold is $3,100. Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is:Multiple ChoiceAccount Title Debit CreditCash 3,100  Accounts Receivable   3,100Account Title Debit CreditCash 4,500  Accounts Receivable   4,500Account Title Debit CreditCash 4,420  Sales discounts 31  Accounts Receivable   4,451Account Title Debit CreditCash 3,020  Accounts Receivable   3,020Account Title Debit CreditCash 4,455  Sales discounts 45  Accounts Receivable   4,500

During January, Luxury Cruise Lines incurs employee salaries of $1.1 million. Withholdings in January are $84,150 for the employee portion of FICA, and $233,750 for employee federal and state. The company incurs an additional $68,200 for federal and state unemployment tax and $33,000 for the employer portion of health insurance (fringe benefits payable to Blue Cross Blue Shield).Required:1. to 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 million should be entered as 5,000,000).)