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 journal entries to record accrued payroll, including
employee deductions, and cash payment of the net payroll (salaries payable) for July.
3. Using the above information, complete the below table.
4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to
the July payroll-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.
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Req 1 and 2 Req 3
Req 4
Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities
related to the July payroll-assume that Federal Insurance Contributions Act (FICA) taxes are identical to those on employees
and that State Unemployment Taxes (SUTA) are 5.4% and Federal Unemployment Taxes (FUTA) are 0.6%.
No
Date
General Journal
Debit
Credit
1
July 31
Payroll taxes expense
FICA-Social security taxes payable
FICA-Medicare taxes payable
Federal unemployment taxes payable
State unemployment taxes payable
32,436
23,808
5,568
306
2,754
2
July 31
Employee benefits expense
7,200
Employee medical insurance payable
4,500
Employee life insurance payable
2,700
3
July 31
FICA-Social security taxes payable
47,616
FICA-Medicare taxes payable
11,136
Federal unemployment taxes payable
96,000
State unemployment taxes payable
21,500
Employee union dues payable
1,500
Employee medical insurance payable
4,500
Employee life insurance payable
2,700
Federal unemployment taxes payable
306
2,754
State unemployment taxes payable
Cash
181,676
