Question

the following monthly data are taken from ramirez company at july 31: sales salaries, 320,000; Office salaries, 64,000; federal income taxes withheld, 96,000; state income taxes withheld, 21,500; social security taxes withheld, 23,808; medicare taxes withheld, 5,568; medical insurance premiums, 7,500; life insurance premiums, 4,500; union dues deducted, 1,500; and salaries subject to unemployment taxes, 51,000. 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 jounal 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 answering #3 and #4.

Answer 1

Calculation of amount of premium paid by the employee and employer
Particulars	Total premium	% paid by employees	Premium paid by employees	Premium to be paid by employees
Employee med insurance Payable	7500	40%	3000	4500
Employee life insurance payable	4500	40%	1800	2700

1	Journal entries for accrued payroll
	Date	General journal	Debit	credit
	July	Sales salaries expense	320000
		Office salaries expense	64000
		Social security taxes payable		23808
		Medicare tax Payable		5568
		Employee federal income tax Payable		96000
		Employee state income tax Payable		21500
		Employee medical insurance payable		7500
		Employee life insurance Payable		4500
		Employee union dues payable		1500
		Salaries Payable		223624
2	Journal entry to record cash payment of net Payroll
	Date	General journal	Debit	Credit
	July	Salaries Payable	223624
		Cash		223624

3	Calculate the unemployment tax amount
	Tax	Salaries subject to unemployment tax	Tax rate	Tax amount
	State unemployment tax	51000	5.40%	2754
	Federal Unemployment tax	51000	0.60%	306
				3060

	Date	General journal	Debit	credit
	July	Payroll tax expense	37236
		Social security tax payable		23808
		Medicare tax Payable		5568
		State unemployment tax payable		2754
		Fed unemployment Tax Payable		306
		Employee med insurance Payable		3000
		Employee life Insurance Payable		1800
4	Journal entries for cash Payment of all liabilities related to July Payroll
	Date	General Journal	Debit	Credit
	July	Social security tax Payable	47616
		Medicare Tax payable	11136
		Employee federal income tax payable	96000
		Employee state income tax payable	21500
		Employee Medicare insurance tax payable	7500
		Employee life insurance Payable	4500
		Employee union dues Payable	1500
		Federal unemployment tax Payable	2754
		Employee Medicare insurance Payable	306
		Cash		192812