The following monthly data are taken from Ramirez Company at July 31: Sales sala

Question

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $540,000; Office salaries, $108,000; Federal income taxes withheld, $162,000; State income taxes withheld, $36,000; Social security taxes withheld, $40,176; Medicare taxes withheld, $9,396; Medical insurance premiums, $13,000; Life insurance premiums, $10,000; Union dues deducted, $7,000; and Salaries subject to unemployment taxes, $62,000. The employee pays forty percent of medical and life insurance premiums. Using the above information, complete the below table. Prepare the journal entries to record accrued payroll and cash payment of the net payroll 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%. 3&4. Using the above information, complete the below table. 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%

Explanation / Answer

1 & 2 31-Jul Salary Payable Dr 384228                  Cash Cr 384228 ( to record cash payment of net payroll) 3 & 4 Tax Amount Tax Rate Tax subject to Tax amount State unemployment Taxes payable 62000 5.40% 3348 Federal unemployment Taxes payable 62000 0.60% 372 FICA Social seciruty tax expense Dr 80352 FICA Medicare seciruty tax expense Dr 18792 Employee medical insurance expense Dr 7800 Employee life insurance expense Dr 6000 State unemployment Taxes expense Dr 3348 Federal unemployment Taxes expense Dr 372 FICA-Social sec taxes payable Cr 80352 FICA-Medicare taxes payable Cr 18792 Employee medical insurance payble Cr 7800 Employee life insurance payble Cr 6000 State unemployment Taxes payable Cr 3348 Federal unemployment Taxes payable Cr 372 FICA-Social sec taxes payable Dr 80352 (40176*2) FICA-Medicare taxes payable Dr 18792 (9396*2) Employee medical insurance payble Dr 7800 Employee life insurance payble Dr 6000 State unemployment Taxes payable Dr 3348 Federal unemployment Taxes payable Dr 372                       Cash Cr 116664

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