Tabel 1 (Requirement 1) | ||||
Total premium | % paid by employees | Premium paid by employees (Total premium x 40%) |
Premium paid by employer [(Total premium x (100% - 40%)] |
|
Employee Medical Insurance Payable | $7,000 | 40% | $2,800 | $4,200 |
Employee Life Insurance Payable | $4,000 | 40% | $1,600 | $2,400 |
.
.
2. Journal entry for accrued payroll, including employee deductions, for July | |||
Date | General Journal | Debit | Credit |
July 31 | Sales Salaries | $200,000 | |
Office Salaries | $160,000 | ||
FICA - Medicare taxes payable | $5,220 | ||
FICA - Social Sec. taxes payable | $22,320 | ||
Employee fed. Inc. taxes payable | $90,000 | ||
Employee state inc. taxespayable | $20,000 | ||
Employee medical insurance payable [Refer table 1] | $2,800 | ||
Employee life insurance payable [Refer table 1] | $1,600 | ||
Employee union dues payable | $1,000 | ||
Salaries payable [Refer working note 1] | $217,060 | ||
Record the cash payment of salaries: | |||
Date | General Journal | Debit | Credit |
July 31 | Salaries payable | $217,060 | |
Cash | $217,060 |
.
.
Table 2 (Requirement 3) | |||
Tax |
Amounts Subject to Tax (a) |
Tax Rate (b) |
Tax Amount (a x b) |
State Unemployment Taxes Payable | $50,000 | 5.40% | $2,700 |
Federal Unemployment Taxes Payable | $50,000 | 0.6% | $300 |
.
.
4. Journal entries to record cash payment of all liabilities related to the July payroll. | ||||
No. | Date | General Journal | Debit | Credit |
1 | July 31 | Payroll taxes expense [Total taxes = $22,320 + $5,220 + $2,700 + $300] | $30,540 | |
FICA - Social Sec. taxes payable | $22,320 | |||
FICA - Medicare taxes payable | $5,220 | |||
Federal unemployment taxes payable [Refer table2] | $2,700 | |||
State unemployment taxes payable [Refer table2] | $300 | |||
Record the employer's benefit expense | ||||
No. | Date | General Journal | Debit | Credit |
2 | July 31 | Employee benefits expense [$4,200 + $2,400] | $6,600 | |
Employee medical insurance payable [Refer table 1] | $4,200 | |||
Employee life insurance payable [Refer table 1] | $2,400 | |||
Record the cash payment of all liabilities related to the July payroll. | ||||
No. | Date | General Journal | Debit | Credit |
3 | July 31 | FICA - Social Sec. taxes payable [Employer contribution + Employee contribution = $22,320 + $22,320] | $44,640 | |
FICA - Medicare taxes payable [Employer contribution + Employee contribution = $5,220 + $5,220] | $10,440 | |||
Employee fed. Inc. taxes payable | $90,000 | |||
Employee State. Inc. taxes payable | $20,000 | |||
Employee medical insurance payable | $7,000 | |||
Employee life insurance payable | $4,000 | |||
Employee union dues payable | $1,000 | |||
Federal unemployment taxes payable [Refer Table 2] | $2,700 | |||
State unemployment taxes payable [Refer Table 2] | $300 | |||
Cash [Refer working note 2] | $180,080 |
.
.
Working note 1 - Computation of net salaries payable to employees | ||
Amount | Amount | |
Salaries: | ||
Sales Salaries | $200,000 | |
Office Salaries | $160,000 | |
Total salaries (a) | $360,000 | |
Total deductions: | ||
Employee fed. Inc. taxes payable | $90,000 | |
Employee state inc. taxespayable | $20,000 | |
FICA - Social Sec. taxes payable | $22,320 | |
FICA - Medicare taxes payable | $5,220 | |
Employee medical insurance payable | $2,800 | |
Employee life insurance payable | $1,600 | |
Employee union dues payable | $1,000 | |
Total deduction (b) | $142,940 | |
Net salaries payable to employees (a - b) | $217,060 |
.
.
Working note 2 - Computation of amount of cash to be paid by the employer (excluding net salaries): | |
Amount | |
FICA - Social Sec. taxes payable [Employer contribution + Employee contribution = $22,320 + $22,320] | $44,640 |
FICA - Medicare taxes payable [Employer contribution + Employee contribution = $5,220 + $5,220] | $10,440 |
Employee fed. Inc. taxes payable | $90,000 |
Employee State. Inc. taxes payable | $20,000 |
Employee medical insurance payable | $7,000 |
Employee life insurance payable | $4,000 |
Employee union dues payable | $1,000 |
Federal unemployment taxes payable [Refer Table 2] | $2,700 |
State unemployment taxes payable [Refer Table 2] | $300 |
Total taxes paid in cash | $180,080 |
i don't understand what i am getting wrong LLICIDCOTCOy puy LOF2, The following monthly data are taken from Ramir...
Exercise 11-8 Recording payroll LO P2, P3 The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $200,000; Office salaries, $160,000: Federal points withheld, $5,220; Medical insurance premiums, $7,000; Life insurance premiums, $4,000 subject to unemployment are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 06%. Life insurance premiums, $4,000; Unlon dues deducted, $1,000, and Salaries taxes, $50,000. The employee pays 40% of medical and ife insurance premiums. Assume...
Help Save! The following monthly data are taken from Ramirez Company at July 31: Sales salaries. $560,000, Office salaries. $112.000; Federal ncome taxes withheld, $168.000. State income taxes withheld, $37,500, Social security taxes withheld, $41,664 Medicare taxes withheld. $9.744: Medical insurance premiums. $13.500; Life insurance premiums, $10.500, Union dues deducted, $7,500 and Salaries subject to unemployment taxes, $63,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA taxes are identical to those on employees and that...
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...
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $200,000; Office salaries, $160,000; Federal income taxes withheld, $90,000; State income taxes withheld, $20,000; Social security taxes withheld, $22,320; Medicare taxes withheld, $5,220; Medical insurance premiums, $7,000, Life insurance premiums, $4,000; Union dues deducted, $1,000; and Salaries subject to unemployment taxes, $50,000. The employee pays 40% of medical and life insurance premiums Assume that FICA taxes are identical to those on employees and that SUTA taxes...
Exercise 11-8 Recording payroll LO P2, P3 The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $200,000; Office salaries, $160,000; Federal income taxes withheld, $90,000; State income taxes withheld, $20,000; Social security taxes withheld, $22,320; Medicare taxes withheld, $5,220; Medical insurance premiums, $7,000; Life insurance premiums, $4,000; Union dues deducted, $1,000; and Salaries subject to unemployment taxes, $50,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA taxes are identical to...
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, $13,500; Union 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...
multi part question, i leave good feedback
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...
Check the work and need help with the rest of it.
Exercise 11-8 Recording payroll LO P2, P3 The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $200,000; Office salaries, $160,000; Federal income taxes withheld, $90,000; State income taxes withheld, $20,000; Social security taxes withheld, $22,320; Medicare taxes withheld, $5,220; Medical insurance premiums, $7,000; Life insurance premiums, $4,000; Union dues deducted, $1,000; and Salaries subject to unemployment taxes, $50,000. The employee pays 40% of medical...
Exercise 9-8 Recording payroll LO P2, P3
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...
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office salaries, $84,000; Federal income taxes withheld, $126,000, State income taxes withheld, $28,000; Social security taxes withheld, $31,248; Medicare taxes withheld, $7,308; Medical insurance premiums, $10,000; Life insurance premiums. $7000: Union dues deducted, $4,000, and Salaries subject to unemployment taxes, $56,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA taxes are identical to those on employees and that SUTA taxes...