Question

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $660,000, Office salaries, $132,000; Federal income taxes withheld, $198.000; State income taxes withheld, $44,000: Social security taxes withheld, $49,104; Medicare taxes withheld. $11.484; Medical insurance premiums, $16,000: Life insurance premiums, $13,000; Union dues deducted, $10,000, and Salaries subject to unemployment taxes, $68,000. 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 06%. taxes are ideert to unemployment te premiums $16,000: Life$44.000; Social & 2. Using the employees and that she employee pars premiums, $13.00 es withheld, 549 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% Complete this question by entering your answers in the tabs below. y entering your an Req 1 and 2 Req3 Reg 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 Total Pald by Premium Pald Premium Paid Premium Employees by Employees by Employer Employee Medical Insurance Payable Employee Life Insurance Payable Date General Journal Debit Credit Record journal entry for accrued payroll, including employee deductions, for July / / / /

Answer 1

Answer- 1-Calculation of the amount of premium paid by the Employee and Employer:-

Particulars	Total Premium	% Paid by Employees	Premium Paid by Employees	Premium Paid by Employer
Employee Medical Insurance Payable	$16,000	40%	$6,400	$9,600
Employee Life Insurance Payable	$13,000	40%	$5,200	$7,800

1-Journal entry for accrual payroll including employee deductions for July:-

Date	Account Title and Explanation	Debit ($)	Credit ($)
July 31	Sales Salaries Expenses	660,000
	Office Salaries	132,000
	Social security tax payable		49,104
	Medicare tax payable		11,484
	Employee fed income taxes payable		198,000
	Employee state income taxes payable		44,000
	Employee medical insurance payable		6,400
	Employee Life Insurance Payable		5,200
	Employee union dues payable		10,000
	Salaries Payable (Balancing Figure)		467,812
	(To record the accrual payroll)

2-Journal Entry for cash payment of net payroll for the month of July:-

Date	Account Title and Explanation	Debit ($)	Credit ($)
July 31	Salaries Payable	467,812
	Cash		467,812
	(To record the payment of salaries payable)

3-Calculate the unemployment tax amount:-

Tax	Salaries subject to Unemployment Tax	Tax Rate	Tax Amount
State Unemployment Taxes	$68,000	5.40%	$3,672
Federal Unemployment Taxes	$68,000	0.60%	$408
Total Unemployment Tax Amount			$4,080

4-Journal Entry for accrued payroll:-

Date	Account Title and Explanation	Debit ($)	Credit ($)
July 31	Payroll taxes expense	82,068
	Social security tax payable		49,104
	Medicare tax payable		11,484
	State Unemployment Taxes Payable		3,672
	Federal Unemployment Taxes Payable		408
	Employee medical insurance payable		9,600
	Employee Life Insurance Payable		7,800
	(To record the accrued employer payroll taxes)

Journal Entry for accrued payroll:-

Date	Account Title and Explanation	Debit ($)	Credit ($)
July 31	Social security tax payable	98,208
	Medicare tax payable	22,968
	Employee fed income taxes payable	198,000
	Employee state income taxes payable	44,000
	Employee medical insurance payable	16,000
	Employee Life Insurance Payable	13,000
	Employee union dues payable	10,000
	State Unemployment Taxes Payable	3,672
	Federal Unemployment Taxes Payable	408
	Cash		406,256
	(To record the cash payment of all liabilities)

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