Question

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $560,000; Office salaries, $112,000; Federal income taxes withheld, $168,000; State income taxes withheld, $37,500; Social security taxes withheld, $41,664; Medicare taxes withheld, $9,744; Medical insurance premiums, $13,500; Life insurance premiums, $10,500; Union dues deducted, $7,500; and Salaries subject to unemployment taxes, $63,000. 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 and cash payment of the net payroll for July.
3. Using the above information, complete the below table.
4. Record the accrued employer payroll taxes and all other employer-paid expenses and the cash payment of all liabilities for July-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%

Using the above information, complete the below table and Prepare the journal entries to record accrued payroll and cash payment of the net payroll for July.

		Total Premium	% Paid by Employees	Premium Paid by Employees	Premium Paid by Employer
Employee Medical Insurance Payable
Employee Life Insurance Payable
Date	General Journal	Debit	Credit
Record journal entry for accrued payroll, including employee deductions, for July.
July 31
Record the cash payment of salaries.
July 31

• Req 1 and 2

Using the above information, complete the below table.

Tax	Amounts Subject to Tax	Tax Rate	Tax Amount
State Unemployment Taxes Payable
Federal Unemployment Taxes Payable

Record the accrued employer payroll taxes and all other employer-paid expenses and the cash payment of all liabilities for July-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%

• 1

  Record all employer's payroll expenses and liabilities for the month of July.

• 2

  Record the employer's benefit expense.

• 3

  Record the cash payment of all liabilities related to the July payroll.

Answer 1