In: Accounting
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%