1. The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $200,000; office salaries, $160,000; 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 unemployement taxes, $50,000. The employee pays 40% of medical and life insurance premiums.

Prepare journal entries to record: (1) accrued payroll, including employee deductions for July; (2) cash payment of the net payroll (salaries payable) for July; (3) acrued employer payroll taxes, and other related employment expenses, 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% and (4) cash payment of all liabilities related to the July payroll.

2. On Jan. 8 the end of the first weekly pay period of the year, Regis Companys payroll register showed taht its emplyees earned $22,760 of office salaries and $65,840 of sales salaries. Withholdings from the employees salries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45% $12,860 of federal income taxes, $1,340 of medical insurance deductions, and $840 of union dues. No employees earned more than $7,000 in this first period.

Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Regis Companys Jan. 8 (employee) Payroll expenses and liabilities (Round amounts to cents).

Prepare the journal entry to record REgis (employer) Payroll taxes resulting from the Jan. 8 payroll. Regis merit rating reduces its state unemployement tax rate of 4% of the first $7,000 paid each employee. The federal unemployement tax rate is 0.6% (Round amount to cents).