Question

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $520,000; Office salaries, $104,000; Federal income taxes withheld, $156,000; State income taxes withheld, $35,000; Social security taxes withheld, $38,688; Medicare taxes withheld, $9,048; Medical insurance premiums, $12,500; Life insurance premiums, $9,500; Union dues deducted, $6,500; and Salaries subject to unemployment taxes, $61,000. 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%.

• Req 1 and 2
• Req 3
• Req 4

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 Sales salaries expense 520,000 Office salaries expense 104,000 Employee fed. inc. taxes payable 156,000 Employee state inc. taxes payable 35,000 FICA—Social sec. taxes payable 9,048 FICA—Medicare taxes payable 5,000 Employee life insurance payable 3,800 Employee union dues payable 6,500 Salaries payable 369,964 Record the cash payment of salaries. July 31

	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%

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

Note: Enter debits before credits.

	Date General Journal Debit Credit July 31

Answer 1