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, 320,000; Office salaries, 64,000; federal income taxes withheld, 96,000; state income taxes withheld, 21,500; social security taxes withheld, 23,808; medicare taxes withheld, 5,568; medical insurance premiums, 7,500; life insurance premiums, 4,500; union dues deducted, 1,500; and salaries subject to unemployment taxes, 51,000. 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 jounal 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%.

I need help answering #3 and #4.

Explanation / Answer

Calculation of amount of premium paid by the employee and employer

Particulars

Total premium

% paid by employees

Premium paid by employees

Premium to be paid by employees

Employee med insurance Payable

7500

40%

3000

4500

Employee life insurance payable

4500

40%

1800

2700

1

Journal entries for accrued payroll

Date

General journal

Debit

credit

July

Sales salaries expense

320000

Office salaries expense  

64000

         Social security taxes payable

23808

         Medicare tax Payable

5568

         Employee federal income tax Payable

96000

         Employee state income tax Payable

21500

         Employee medical insurance payable

7500

         Employee life insurance Payable

4500

         Employee union dues payable

1500

         Salaries Payable

223624

2

Journal entry to record cash payment of net Payroll

Date

General journal

Debit

Credit

July

Salaries Payable

223624

     Cash

223624

3

Calculate the unemployment tax amount

Tax

Salaries subject to unemployment tax

Tax rate

Tax amount

State unemployment tax

51000

5.40%

2754

Federal Unemployment tax

51000

0.60%

306

3060

Date

General journal

Debit

credit

July

Payroll tax expense

37236

        Social security tax payable

23808

        Medicare tax Payable

5568

      State unemployment tax payable

2754

      Fed unemployment Tax Payable

306

      Employee med insurance Payable

3000

     Employee life Insurance Payable

1800

4

Journal entries for cash Payment of all liabilities related to July Payroll

Date

General Journal

Debit

Credit

July

Social security tax Payable

47616

Medicare Tax payable

11136

Employee federal income tax payable

96000

Employee state income tax payable

21500

Employee Medicare insurance tax payable

7500

Employee life insurance Payable

4500

Employee union dues Payable

1500

Federal unemployment tax Payable

2754

Employee Medicare insurance Payable

306

                Cash

192812

Calculation of amount of premium paid by the employee and employer

Particulars

Total premium

% paid by employees

Premium paid by employees

Premium to be paid by employees

Employee med insurance Payable

7500

40%

3000

4500

Employee life insurance payable

4500

40%

1800

2700

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