Question

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $420,000; Office salaries, $84,000; Fed
Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Using the above information, compl
Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 Using the above information, comple
Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Reg 4 Record the accrued employer payrol
Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Record the accrued employer payrol
Req 1 and 2 Req3 Req 4 Record the accrued employer payroll taxes and all other employer-paid expenses and the cash payment of
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Answer #1
1 &2
Calculation of the amount of premium paid by the employee and employer
Total Premium % paid by employees Premium paid by employees Premium paid by employers 60% x Total premium
Employee Medical Insurance Payable $  10,000.00 40.00% 4000 6000
Employee Life Insurance Payable $    7,000.00 40.00% 2800 4200
1) Journal entries for accrued payroll
Journal Entry Debit Credit
Sales Salaries Expense $420,000.00
Office Salaries Expense $  84,000.00
FICA-Social Security Tax Payable $  31,248.00
FICA-Medicare Tax Payable $    7,308.00
Federal Income Tax Payable $126,000.00
Union dues deducted $    4,000.00
Employee Medical Insurance Payable $    4,000.00
Employee Life Insurance Payable $    2,800.00
State income tax withheld $  28,000.00
Salaries Payable $300,644.00
2. Journal entry for the cash payment of net payroll
Salaries Payable $300,644.00
                 Cash $300,644.00
3. Calculate the unemployment tax amount
Tax Amount subject toTax Tax Rate Tax Amount
State unemployment Tax Payable 56000 5.40% 3024
Federal unemployment Tax Payable 56000 0.60% 336
Journal entires for accrued employer payroll taxes.
Payroll Taxes Expense $  52,116.00
        FICA-Social Security Tax Payable $  31,248.00
       FICA-Medicare Tax Payable $    7,308.00
       Employee Medical Insurance Payable $    6,000.00
       Employee Life Insurance Payable $    4,200.00
      State unemployment Tax Payable $    3,024.00
      Federal unemployment Tax Payable $       336.00
4. Journal entries for cash payment of all liabilities related to the july payroll
FICA-Social Security Tax Payable $  31,248.00
FICA-Medicare Tax Payable $    7,308.00
Federal Income Tax Payable $126,000.00
Union dues deducted $    4,000.00
Employee Medical Insurance Payable $  10,000.00
Employee Life Insurance Payable $    7,000.00
State unemployment Tax Payable $    3,024.00
Federal unemployment Tax Payable $       336.00
State income tax withheld $  28,000.00
                Cash $216,916.00
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