The following monthly data are taken from Ramirez Company at July 31: Sales sala
ID: 2599101 • Letter: T
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 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%
Journal entry worksheet
Q1. Record all employer's payroll expenses and liabilities for the month of July. Q2.Record the employer's benefit expense. Q3. Record the cash payment of all liabilities related to the July payroll.
Explanation / Answer
1) Employee's salaries and related deductions:
2) Employer's benefit expenses :
3) Cash payment of all liabilities :
Date Accounts Titles Debit $ Credit $ July 31 Sales salaries 320000 Office salaries 64000 Federal income taxes withheld 96000 State income taxes withheld 21500 Social security taxes withheld 23808 Medicare taxes withheld 5568 Medical insurance premiums 7500 Life insurance premiums 4500 Union dues 1500 Salaries and Wages payable 223624Related Questions
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