Question
In: Accounting
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $700,000; Office...
The following monthly data are taken from Ramirez Company at
July 31: Sales salaries, $700,000; Office salaries, $140,000;
Federal income taxes withheld, $210,000; State income taxes
withheld, $47,000; Social security taxes withheld, $52,080;
Medicare taxes withheld, $12,180; Medical insurance premiums,
$17,000; Life insurance premiums, $14,000; Union dues deducted,
$11,000; and Salaries subject to unemployment taxes, $70,000. 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%
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.
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Using the above information, complete the below table.
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Record all employer's payroll expenses and liabilities for the month of July.
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2
Record the employer's benefit expense.
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3
Record the cash payment of all liabilities related to the July payroll.
Solutions
Expert Solution
| 1&2. |
Total Premium |
% paid by employee |
Premium paid by employees |
Premium paid by employer |
||||||
| 1 | 2 | 3=1*2 | 4=1-3 | |||||||
| Employee medical insurance payable | 17000 | 40% | 6800 | 10200 | ||||||
| Employee life insurance payable | 14000 | 40% | 5600 | 8400 | ||||||
| Journal entry for accrued payroll: | ||||||||||
| Date | Particulars | Debit | Credit | |||||||
| July | Sales salaries expenses | 700000 | ||||||||
| Office salaries expenses | 140000 | |||||||||
| Social security taxes payable | 52080 | |||||||||
| Medicare taxes payable | 12180 | |||||||||
| Employee federal income taxes payable | 210000 | |||||||||
| Employee state income taxes payable | 47000 | |||||||||
| Employee medical insurance payable | 6800 | |||||||||
| Employee life insurance payable | 5600 | |||||||||
| Employee union dues payable | 11000 | |||||||||
| Salaries payable | (Balance figure) | 495340 | ||||||||
| Journal entry for cash payment of net payroll: | ||||||||||
| Date | Particulars | Debit | Credit | |||||||
| July | Salaries payable | 495340 | ||||||||
| Cash | 495340 | |||||||||
| 3 | Tax |
Amounts subject to tax |
Tax rate | Tax amount | ||||||
| 1 | 2 | 1*2 | ||||||||
| State unemployment taxes payable | 70000 | 5.40% | 3780 | |||||||
| Federal unemployment taxes payable | 70000 | 0.60% | 420 | |||||||
| 4 | Journal entry for accrued employer payroll taxes: | |||||||||
| Date | Particulars | Debit | Credit | |||||||
| July | Payroll tax expenses | 87060 | ||||||||
| Social security taxes payable | 52080 | |||||||||
| Medicare taxes payable | 12180 | |||||||||
| Employee medical insurance payable |
 ekkarill92 answered 2 years agoRelated SolutionsThe following monthly data are taken from Ramirez Company at July 31: Sales salaries, $640,000; Office...The following monthly data are taken from Ramirez Company at
July 31: Sales salaries, $640,000; Office salaries, $128,000;
Federal income taxes withheld, $192,000; State income taxes
withheld, $43,000; Social security taxes withheld, $47,616;
Medicare taxes withheld, $11,136; Medical insurance premiums,
$15,400; Life insurance premiums, $12,300; Union dues deducted,
$8,400; and Salaries subject to unemployment taxes, $69,000. The
employee pays 40% of medical and life insurance premiums.
Prepare journal entries to record (1) accrued payroll, including
employee deductions for July; (2)...
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $460,000; Office...The following monthly data are taken from Ramirez Company at
July 31: Sales salaries, $460,000; Office salaries, $92,000;
Federal income taxes withheld, $138,000; State income taxes
withheld, $31,000; Social security taxes withheld, $34,224;
Medicare taxes withheld, $8,004; Medical insurance premiums,
$11,000; Life insurance premiums, $8,000; Union dues deducted,
$5,000; and Salaries subject to unemployment taxes, $58,000. The
employee pays 40% of medical and life insurance premiums. Assume
that FICA taxes are identical to those on employees and that SUTA
taxes...
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $360,000; Office...The following monthly data are taken from Ramirez Company at
July 31: Sales salaries, $360,000; Office salaries, $72,000;
Federal income taxes withheld, $108,000; State income taxes
withheld, $24,000; Social security taxes withheld, $26,784;
Medicare taxes withheld, $6,264; Medical insurance premiums,
$8,500; Life insurance premiums, $5,500; Union dues deducted,
$2,500; and Salaries subject to unemployment taxes, $53,000. The
employee pays 40% of medical and life insurance premiums. Assume
that FICA taxes are identical to those on employees and that SUTA
taxes...
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...
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $620,000; Office...The following monthly data are taken from Ramirez Company at
July 31: Sales salaries, $620,000; Office salaries, $124,000;
Federal income taxes withheld, $186,000; State income taxes
withheld, $41,500; Social security taxes withheld, $46,128;
Medicare taxes withheld, $10,788; Medical insurance premiums,
$15,000; Life insurance premiums, $12,000; Union dues deducted,
$9,000; and Salaries subject to unemployment taxes, $66,000. The
employee pays 40% of medical and life insurance premiums. Assume
that FICA taxes are identical to those on employees and that SUTA
taxes...
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $400,000; Office...The following monthly data are taken from Ramirez Company at
July 31: Sales salaries, $400,000; Office salaries, $80,000;
Federal income taxes withheld, $120,000; State income taxes
withheld, $27,000; Social security taxes withheld, $29,760;
Medicare taxes withheld, $6,960; Medical insurance premiums,
$9,500; Life insurance premiums, $6,500; Union dues deducted,
$3,500; and Salaries subject to unemployment taxes, $55,000. The
employee pays 40% of medical and life insurance premiums. Assume
that FICA taxes are identical to those on employees and that SUTA
taxes...
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...
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office...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...
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $600,000; Office...The following monthly data are taken from Ramirez Company at
July 31: Sales salaries, $600,000; Office salaries, $120,000;
Federal income taxes withheld, $180,000; State income taxes
withheld, $40,000; Social security taxes withheld, $44,640;
Medicare taxes withheld, $10,440; Medical insurance premiums,
$14,500; Life insurance premiums, $11,500; Union dues deducted,
$8,500; and Salaries subject to unemployment taxes, $65,000. The
employee pays 40% of medical and life insurance premiums. Assume
that FICA taxes are identical to those on employees and that SUTA
taxes...
The following data are taken from the records of Alee Company. December 31, 2020 December 31,...The following data are taken from the records of Alee Company.
December 31, 2020 December 31, 2019 Cash $ 15,000 $ 8,000
Current assets other than cash 85,000 60,000 Long-term debt
investments 10,000 53,000 Plant assets 335,000 215,000
$445,000 $336,000 Accumulated depreciation $ 20,000 $ 40,000
Current liabilities 40,000 22,000 Bonds payable 75,000 –0–
Common stock 254,000 254,000 Retained earnings 56,000 20,000
$445,000 $336,000 Additional information: Held-to-maturity debt
securities carried at a cost of $43,000 on December 31, 2019, were...
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