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The following monthly data are taken from Ramirez Company at July 31: Sales salartes, $560,000; Office salaries, $112,000; Federal Income taxes withheld, $168,000; State Income taxes withheld, $37,500, Social security taxes withheld, $41,664; Medicare taxes withheld, $9,744; Medical Insurance premlums, $13,500; Life Insurance premlums, $10,500, Union dues deducted, $7,500, and Salarles subject to unemployment taxes, $63,000. The employee pays 40 % of medical and life Insurance premlums. 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 lilabilities 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. Reg 1 and 2 Req 3 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. nces Premium Paid by Employees Total Premium % Paid by Employees Premium Paid 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 July 31 Record the cash payment of salaries July 31

Answer 1

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Naming convention is not available, can be slightly different: Solution: Total % paid by Prem by Prem by 1) Premium employee employee employer 40% 5,400 40% $ Employee medical insurance payable Employee life insurance payable $13,500 8,100 4,200 6,300 $10,500 2) Journal entries Account title and explaination Debit Date Credit Sales Salaries Expense Jul.31 560000 Office Salarieis expense 112000 FICA Social security taxes payable FICA Medicare taxes payable 41664 9744 Employee Federal Income taxes payable Employee State Income taxes payable Employee medical insurance payable Employee life insurance payable Employee union dues payable Salaries Payable (To record the payroll accrual) Salaries Payable 168000 37500 5400 4200 7500 (plug) 397992 Jul.31 397992 Cash 397992 (To record the payment of salaries) Part-3): Tax Amt Subject Tax rate Tax to tax Amount State unemployment taxes payable Federal unemployment taxes payable Total Unemployment tax amount $63,000 $63,000 5.40% $ 3,402 0.60% $ 378 $ 3,780

Journal entries Part-4) Account title and explaination Debit No. Date Credit 1) Jul.31 Payroll Tax expense (plug) 55,188 $ 41,664 FICA - Social security taxes payable FICA Medicare taxes payable State unemployment taxes payable Federal unemployment taxes payable (To record the payroll tax expense) Employee benefit expense Employee medical insurance payable Employee life insurance payable (To record the employee benefits) FICA - Social security taxes payable FICA Medicare taxes payable State unemployment taxes payable Federal unemployment taxes payable Employee Federal Income taxes payable Employee State Income taxes payable Employee medical insurance payable Employee life insurance payable Employee union dues payable (Given) (Given) 9,744 - (63000*5.4%) (63000 0.6%) 3,402 378 Jul.31 $14,400 $ 2) (plug) (13500 60%) (10500 60%) 8,100 6,300 Jul.31 3) (41664*2) 83,328 (9744 2) $19,488 $ 3,402 378 168000 $37,500 $13,500 $10,500 $ 7,500 Cash (plug) 343596 (To record the payment of payroll liabilities)