Alamar Petroleum Company matches employee contributions to their retirement plans and pays a percentage of medical and life insurance premiums. (All three of these are considered fringe benefits.) Assume that all employees cumulative salaries do not exceed the relevant wage bases for Social Security, FUTA or SUTA. Salaries are not yet paid.

B C D E F G H 1 Alamar Petroleum Company matches employee contributions to their retirement plans and pays a percentage of medical and life insurance premiums. (All three of these are considered fringe benefits.) Assume that all employees' cumulative salaries do not exceed the relevant wage bases for Social Security, FUTA or SUTA. Salaries are not yet paid. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows: Salaries and wages Employee contribution to voluntary retirement plan Medical insurance premiums Life insurance premiums Federal income taxes to be withheld Local income taxes to be withheld 3,900,000 103,000 61,000 10,900 590,000 72,000 Federal unemployment tax rate (FUTA) State unemployment tax rate (SUTA) Social Security tax rate Medicare tax rate 0.6% 5.4% 6.2% 1.45% Employer contribution toward medical and life insurance premiums 75% 1. Compute the following amounts using formulas. Do not use any "helper" cells - the entire formula should be in the one cell in the column D answer box. Credit to Salanes Payable Debit to Salaries Expense for employer-paid fringe benefits only 2. 3. Debit to Payroll Tax Expense lllll 4. Credit to Cash when the retirement plan payment is made 5. Credit to Cash when Social Security and Medicare taxes are paid NOTE: Work the answers manually first and test your formulas against those correct answers