The following monthly data are taken from Ramirez Company at July 31: Sales sala
ID: 2568535 • Letter: T
Question
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office salaries, $84,000; Federal income taxes withheld, $126,000; State income taxes withheld, $28,000; Social security taxes withheld, $31,248; Medicare taxes withheld, $7,308; Medical insurance premiums, $10,000; Life insurance premiums, $7,000; Union dues deducted, $4,000; and Salaries subject to unemployment taxes, $56,000. 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%
Explanation / Answer
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Sales salaries -dr 420000 Offive salaries -dr 84000 To federal Income Tax 126000 To state Income tax 28000 To social security tax 31248 To Medical withheld 7308 To Medical insurance premium 10000 To Life insurance premium 7000 To Union dues 4000 To Salaries Payable 290444Related Questions
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