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The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $380,000; Office salaries, $76,000; Federal income taxes withheld, $114,000; State income taxes withheld, $25,500; Social security taxes withheld, $28,272; Medicare taxes withheld, $6,612; Medical insurance premiums, $9,000; Life insurance premiums, $6,000; Union dues deducted, $3,000; and Salaries subject to unemployment taxes, $54,000. 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, including employee deductions, and cash payment of the net payroll (salaries payable) for July. 3. Using the above information, complete the below table. 4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that Federal Insurance Contributions Act (FICA) taxes are identical to those on employees and that State Unemployment Taxes (SUTA) are 5.4% and Federal Unemployment Taxes (FUTA) are 0.6%. No 1 Date July 31 General Journal Debit Credit Payroll taxes expense 38,124 FICA-Social security taxes payable 6,612X FICA-Medicare taxes payable 28,272X State unemployment taxes payable 2,916 Federal unemployment taxes payable 324 2 July 31 Employee benefits expense 9,000 Employee medical insurance payable Employee life insurance payable 5,400 3,600 3 July 31 FICA-Social security taxes payable 56,544 FICA-Medicare taxes payable 13,224 Employee federal income taxes payable 114,000 Employee state income taxes payable 25,500 Employee life insurance payable 6,000 Employee union dues payable State unemployment taxes payable Federal unemployment taxes payable Cash 9,000X 2,916 324 227.508X

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $380,000; Office salaries, $76,000; Federal income taxes withheld, $114,000; State income taxes withheld, $25,500; Social security taxes withheld, $28,272; Medicare taxes withheld, $6,612; Medical insurance premiums, $9,000; Life insurance premiums, $6,000; Union dues deducted, $3,000; and Salaries subject to unemployment taxes, $54,000. 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, including employee deductions, and cash payment of the net payroll (salaries payable) for July. 3. Using the above information, complete the below table. 4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that Federal Insurance Contributions Act (FICA) taxes are identical to those on employees and that State Unemployment Taxes (SUTA) are 5.4% and Federal Unemployment Taxes (FUTA) are 0.6%. No 1 Date July 31 General Journal Debit Credit Payroll taxes expense 38,124 FICA-Social security taxes payable 6,612X FICA-Medicare taxes payable 28,272X State unemployment taxes payable 2,916 Federal unemployment taxes payable 324 2 July 31 Employee benefits expense 9,000 Employee medical insurance payable Employee life insurance payable 5,400 3,600 3 July 31 FICA-Social security taxes payable 56,544 FICA-Medicare taxes payable 13,224 Employee federal income taxes payable 114,000 Employee state income taxes payable 25,500 Employee life insurance payable 6,000 Employee union dues payable State unemployment taxes payable Federal unemployment taxes payable Cash 9,000X 2,916 324 227.508X

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
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The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $380,000; Office salaries, $76,000; Federal income taxes withheld, $114,000; State income taxes withheld, $25,500; Social security taxes withheld, $28,272; Medicare taxes withheld, $6,612; Medical insurance premiums, $9,000; Life insurance premiums, $6,000; Union dues deducted, $3,000; and Salaries subject to unemployment taxes, $54,000. 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, including employee deductions, and cash payment of the net payroll (salaries payable) for July. 3. Using the above information, complete the below table. 4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that Federal Insurance Contributions Act (FICA) taxes are identical to those on employees and that State Unemployment Taxes (SUTA) are 5.4% and Federal Unemployment Taxes (FUTA) are 0.6%. No 1 Date July 31 General Journal Payroll taxes expense Debit 38,124 Credit FICA-Social security taxes payable FICA-Medicare taxes payable 6,612X 28,272X State unemployment taxes payable 2,916 Federal unemployment taxes payable 324 2 July 31 Employee benefits expense 9,000 Employee medical insurance payable Employee life insurance payable 5,400 3,600 3 July 31 FICA-Social security taxes payable 56,544 FICA-Medicare taxes payable 13,224 Employee federal income taxes payable 114,000 Employee state income taxes payable 25,500 Employee life insurance payable 6,000 Employee union dues payable State unemployment taxes payable Federal unemployment taxes payable Cash 9,000X 2,916 324 227.508X
Transcribed Image Text:The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $380,000; Office salaries, $76,000; Federal income taxes withheld, $114,000; State income taxes withheld, $25,500; Social security taxes withheld, $28,272; Medicare taxes withheld, $6,612; Medical insurance premiums, $9,000; Life insurance premiums, $6,000; Union dues deducted, $3,000; and Salaries subject to unemployment taxes, $54,000. 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, including employee deductions, and cash payment of the net payroll (salaries payable) for July. 3. Using the above information, complete the below table. 4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that Federal Insurance Contributions Act (FICA) taxes are identical to those on employees and that State Unemployment Taxes (SUTA) are 5.4% and Federal Unemployment Taxes (FUTA) are 0.6%. No 1 Date July 31 General Journal Payroll taxes expense Debit 38,124 Credit FICA-Social security taxes payable FICA-Medicare taxes payable 6,612X 28,272X State unemployment taxes payable 2,916 Federal unemployment taxes payable 324 2 July 31 Employee benefits expense 9,000 Employee medical insurance payable Employee life insurance payable 5,400 3,600 3 July 31 FICA-Social security taxes payable 56,544 FICA-Medicare taxes payable 13,224 Employee federal income taxes payable 114,000 Employee state income taxes payable 25,500 Employee life insurance payable 6,000 Employee union dues payable State unemployment taxes payable Federal unemployment taxes payable Cash 9,000X 2,916 324 227.508X
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