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In: Accounting

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $520,000; Office...

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

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