Question

Exercise 9-8 Recording payroll LO P2, P3 The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $680,000: Office salaries, $136.000, Federal income taxes withheld, $204,000: State income taxes withheld, $45.500: Social security taxes withheld, $50,592, Medicare taxes withheld, $11,832, Medical insurance premiums, $16,500, Life insurance premiums, $13,500Union dues deducted, $10,500, and Salaries subject to unemployment taxes. $69.000. 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 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 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

Answer 1

Ques 1
Particulars	total	% paid by	premium paid	premium paid
	premium	employees	by employees	by employer
Employee medical insurance payable	16500	40%	6600	9900
Employee life insurance payable	13500	40%	5400	8100
Ques 2
Accounts	Debit	Credit
Sales salaries expenses	680000
Office salaries expenses	136000
Social security taxes payable		50592
medicare tax payable		11832
employee federal income taxes payable		204000
emplyee sate inc. tax payable		45500
employee med. Ins. Payable		6600
employee life ins. Payable		5400
employee union dues payable		10500
salaries payable		481576
Salaries payable	481576
cash		481576
Ques 3
	Amounts subject	tax	tax
Tax	to tax	rate	amount
SUTA	69000	5.40%	3726
FUTA	69000	0.60%	414
Ques 4
Accounts	Debit	Credit
Payroll tax expense	66564
FICA-Social security taxes payable		50592
FICA-Medicare taxes payable		11832
SUTA Pyable		3726
FUTA payable		414
Employee benefits expense	18000
Employee medical insurance payable		9900
employee life insurance payable		8100
Social security taxes payable	101184
medicare tax payable	23664
employee federal income taxes payable	204000
emplyee sate inc. tax payable	45500
employee med. Ins. Payable	16500
employee life ins. Payable	13500
employee union dues payable	10500
SUTA Pyable	3726
FUTA payable	414
cash		418988