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Edit View History Bookmarks Window Help Quiz Help Save & Exlt Submit The following monthly data are taken from Ramirez Company at July 31 Sales salaries, $480,000: Office salaries, $96,000, Federal income taxes withheld, $144,000; State income taxes withheld, $32,000: Social security taxes withheld, $35,712; Medicare taxes withheld, $8,352; Medical insurance premiums, $11,500: Life insurance premiums, $8,500; Union dues deducted, $5,500; and Salaries subject to unemployment taxes, $59,00 The employee pays 40% of medical and life insurance premiums. Assume that FCA 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. 2-10.33) 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% ped Complete this question by entering your answers in the tabs below Req 1 and2 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 Employee Medical Insurance Payable Employee Life Insurance Payable

Solution

Total premium A % paid B Premium paid by employees P=A*B Premium paid by employer A-P ans 1 medical insurance premium payable 11500 40% 4600 6900 Life insurance premium payable 8500 40% 3400 5100 Journal entry 31-Jul Sales Salaries 480000.00 Office salaries 96000.00 Federal Income tax withheld/payable 144000.00 State Income tax payable 32000.00 Social Security Taxes payable 35712.00 Medicare Taxes Payable 8352.00 medical insurance premium payable 4600.00 Life insurance premium payable 3400.00 Union dues payable 5500.00 Salaries Payable 342436.00 31-Jul Salaries Payable 342436.00 Cash 342436.00 ans 3 Amt sub to tax tax rate tax amt State unemployment tax payable 59000 5.40% 3186 Federal Unemployment tax payable 59000 0.60% 354 Journal entry Payroll Tax expenses 59604.00 Social Security Taxes payable 35712.00 Medicare Taxes Payable 8352.00 State unemployment tax payable 3186 Federal Unemployment tax payable 354 medical insurance premium payable 6900 Life insurance premium payable 5100 ans 4 Federal Income tax withheld/payable 144000.00 State Income tax payable 32000.00 Social Security Taxes payable 71424.00 Medicare Taxes Payable 16704.00 medical insurance premium payable 11500.00 Life insurance premium payable 8500.00 Union dues payable 5500.00 State unemployment tax payable 3186 Federal Unemployment tax payable 354 Cash 293168.00 If any doubt please comment