8
Exercise 9-10 (Algo) Recording payroll LO P2, P3
0.86
points
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $300,000; Office salaries,
$60,000; 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 are 5.4% and FUTA taxes are 0.6%.
eBook
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.
Hint
3. Using the above information, complete the below table.
Print
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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References
Req 1
Req 3
Req 4
and 2
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%.
View transaction list View journal entry worksheet
No
1
Date
General Journal
July 31 Salaries payable
Cash
Debit
217,060
Credit
217,060
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