Question

Exercise 9-8 Recording payroll LO P2, P3 The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $540,000; Office salaries, $108,000; Federal income taxes withheld, $162,000; State income taxes withheld, $36,000; Social security taxes withheld, $40,176; Medicare taxes withheld, $9,396; Medical insurance premiums, $13,000; Life insurance premiums, $10,000; Union dues deducted, $7,000; and Salaries subject to unemployment taxes, $62,000. 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 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%.

I need help with these three journal entries.

Answer 1

1 & 2 )

Particulars	Total Premium	% Paid by Employees	Premium Paid by Employees	Premium Paid Employer
Employee Medical Insurance Payable	13000	40%	5200	7800
Employee Life Insurance Payable	10000	40%	4000	6000

Journal entry for accrual payroll including employee deductions for July

Date	Particulars	Debit	Credit
Jul 31	Sales Salaries Expenses	540000
	Office Salaries Expenses	108000
	To Employee Federal Income tax payable		162000
	To Employee State Income tax payable		36000
	To Social security taxes payable		40176
	To Medicare taxes payable		9396
	To Employees Medical Insurance Payable		5200
	To Employees Life Insurance Payable		4000
	To Employee union dues payable		7000
	To Salaries payable ( balancing figure)		384228
Jul 31	Salaries payable	384228
	To Cash		384228
	( To record cash payment of net payroll for the month of July)

3-Calculate the unemployment tax amount

Tax	Salaries subject to Unemployment Tax	Tax Rate	Tax Amount
State Unemployment Taxes	$ 62000	5.40%	$ 3348
Federal Unemployment Taxes	$ 62000	0.60%	$ 372
Total Unemployment Tax Amount			$ 3720

4-Journal Entry for accrued payroll:

Date	Particulars	Debit	Credit
Jul 31	Payroll taxes expense	67092
	Social security tax payable		40176
	Medicare tax payable		9396
	State Unemployment Taxes Payable		3348
	Federal Unemployment Taxes Payable		372
	Employee medical insurance payable		7800
	Employee Life Insurance Payable		6000
	(To record the accrued employer payroll taxes)

Date	Particulars	Debit	Credit
Jul 31	Social security tax payable	80352
	Medicare tax payable	18792
	State Unemployment Taxes Payable	3348
	Federal Unemployment Taxes Payable	372
	Employee medical insurance payable	13000
	Employee Life Insurance Payable	10000
	Employee Federal Income tax payable	162000
	Employee State Income tax payable	36000
	Employee union dues payable	7000
	To Cash		330864
	(To record the cash payment of all liabilities)