The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $380,000; Office salaries, $76,000; Federalincome taxes withheld, $114,000; State income taxes withheld, $25,500; Social security taxes withheld, $28,272; Medicare taxeswithheld, $6,612; Medical insurance premiums, $9,000; Life insurance premiums, $6,000; Union dues deducted, $3,000; and Salariessubject to unemployment taxes, $54,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA taxesare identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.1. & 2. Using the above information, complete the below table and prepare the journal entries to record accrued payroll, includingemployee deductions, and cash payment of the net payroll (salaries payable) for July.3. Using the above information, complete the below table.4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related tothe July payroll-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.Answer is not complete.Complete this question by entering your answers in the tabs below.Req 1 and 2Req 3Req 4Using the above information, complete the below table and prepare the journal entries to record accrued payroll, includingemployee deductions, and cash payment of the net payroll (salaries payable) for July.DateTotalPremium% Paid byEmployeesPremiumPaid byEmployeesPremiumPaid byEmployerEmployee Medical Insurance PayableEmployee Life Insurance Payable$ 9,00040%$3,600$5,400$ 6,00040%$2,400$3,600General JournalDebitCreditRecord journal entry for accrued payroll, including employee deductions, for July.July31Sales salaries expense380,000Office salaries expense76,000FICA-Social security taxes payable28,272FICA Medicare taxes payable6,612Employee federal income taxes114,000payableEmployee state income taxes payable ✓Employee medical insurance payableEmployee life insurance payable✓Employee union dues payable✓Salaries payableRecord the cash payment of salaries.July31Salaries payable456,000

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Using the above information, complete the below table and prepare the journal entries to record accrued payroll, i

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $380,000; Office salaries, $76,000; Federal
income taxes withheld, $114,000; State income taxes withheld, $25,500; Social security taxes withheld, $28,272; Medicare taxes
withheld, $6,612; Medical insurance premiums, $9,000; Life insurance premiums, $6,000; Union dues deducted, $3,000; and Salaries
subject to unemployment taxes, $54,000. 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%.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Req 4
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.
Date
Total
Premium
% Paid by
Employees
Premium
Paid by
Employees
Premium
Paid by
Employer
Employee Medical Insurance Payable
Employee Life Insurance Payable
$ 9,000
40%
$
3,600
$
5,400
$ 6,000
40%
$
2,400
$
3,600
General Journal
Debit
Credit
Record journal entry for accrued payroll, including employee deductions, for July.
July
31
Sales salaries expense
380,000
Office salaries expense
76,000
FICA-Social security taxes payable
28,272
FICA Medicare taxes payable
6,612
Employee federal income taxes
114,000
payable
Employee state income taxes payable ✓
Employee medical insurance payable
Employee life insurance payable
✓
Employee union dues payable
✓
Salaries payable
Record the cash payment of salaries.
July
31
Salaries payable
456,000

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