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 labilities 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%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 11-8 Recording payroll LO P2, P3
The following monthly data are taken from Ramirez Company at July 31 Sales salaries, $700,000: Office salaries, $140,000; Federal
income taxes withheld, $210,000, State income taxes withheld, $47000; Social security taxes withheld, $52,080; Medicare taxes
withheld, $12,180; Medical insurance premiums. $17,000; Life insurance premiums, $14,000; Union dues deducted, $11,000; and
Salaries subject to unemployment taxes, $70,000. 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 lilabilities 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%
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Check my work Exercise 11-8 Recording payroll LO P2, P3 The following monthly data are taken from Ramirez Company at July 31 Sales salaries, $700,000: Office salaries, $140,000; Federal income taxes withheld, $210,000, State income taxes withheld, $47000; Social security taxes withheld, $52,080; Medicare taxes withheld, $12,180; Medical insurance premiums. $17,000; Life insurance premiums, $14,000; Union dues deducted, $11,000; and Salaries subject to unemployment taxes, $70,000. 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 lilabilities 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% Complete this question by entering your answers in the tabs below.
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