Question

Exercise 9-8 Recording payroll LO P2, P3 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%. 182. 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. 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%. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 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%. View transaction list Journal entry worksheet < 1 2 3 Record the cash payment of all liabilities related to the July payroll.

Answer 1

	Amount subject to tax	Tax Rate	Tax Amount
State Unemployment Taxes Payable	70000	5.40%	3780
Federal Unemployment Taxes Payable	70000	0.60%	420

Part 4

No.	Date	General journal	Debit	Credit
1	July 31	Payroll Tax Expenses	101460
		FICA-Social Security Tax Payable		52080
		FICA-Medicare Tax Payable		12180
		State Unemployment Taxes Payable		10200
		Federal Unemployment Taxes Payable		8400
2	July 31	Employee benefits expense	18600
		Employee Medical Insurance Payable		10200
		Employee Life Insurance Payable		8400
3	July 31	FICA-Social Security Tax Payable (52080*2)	104160
		FICA-Medicare Tax Payable (12180*2)	24360
		Employee Federal Income Tax Payable	210000
		Employee State Income Tax Payable	47000
		Employee Medical Insurance Payable	17000
		Employee Life Insurance Payable	14000
		Employee Union Dues Payable	11000
		State Unemployment Taxes Payable	10200
		Federal Unemployment Taxes Payable	8400
		Cash		446120

Employee Medical Insurance Payable = 17000*(1-40%) = 10200

Employee Life Insurance Payable = 14000*(1-40%) = 8400