The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $200,000; Office salaries, $160,000; Federal
income
taxes
withheld, $90,000; State income taxes withheld, $20,000; Social security taxes withheld, $22,320; Medicare taxes
withheld, $5,220; Medical insurance premiums, $7,000; Life insurance premiums, $4,000; Union dues deducted, $1,000; and Salaries
subject to
unemployment taxes, $50,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA taxes
are identical to those on
employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.
1. & 2. Using the above information, complete the below table and prepare the journal entries to record accrued payroll, including
employee deductions, and cash payment of the net payroll (salaries payable) for July.
3. Using the above information, complete the below table.
4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to
the July payroll-assume that FICA taxes
are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Req 4
Using the above information, complete the below table and prepare the journal entries to record accrued payroll, including
employee deductions, and cash payment of
the net payroll (salaries payable) for July.
Date
Employee Medical Insurance Payable
Employee Life Insurance Payable
General Journal
Total
Premium
% Paid by Premium Paid
Employees by Employees
$ 7,000
40% $
2,800
Premium Paid
by Employer
$
4,200
$
4,000
40% $
1,600 $
2,400
Debit
Record journal entry for accrued payroll, including employee deductions, for July.
July 31 Sales salaries expense
Office salaries expense
FICA-Social security taxes payable
FICA-Medicare taxes payable
Employee federal income taxes payable
Employee state income taxes payable
Credit
200,000
160,000
22,320
5,220
90,000
20,000
2,800
1,600
1,000