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Exercise 11-10 Recording payroll P2 P3 The following monthly data are taken from Ramirez Company at July 31: sales salaries, $200,000; office salaries, $160,000;
Exercise 11-10 Recording payroll P2 P3 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 unemployment 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) accrued 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.
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