Question
Exercise 9-15: Recording Payroll The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $300,000: Office salaries, $60,000: Federal income tades
Exercise 9-15: Recording Payroll
The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $300,000: Office salaries, $60,000: Federal income tades withheld, $90,000: State income taes withheld, $20,000: Social security taxes withheld $22,320: Medicare taxes witheheld, $5220: Medical Insurance premiums, $7,000: Life Insurance premiums, $4,000: Union dues deducted, $1000.00: and Salaries subject to unemployment taxes $50,000: The employee pays 40% of medical and life insurance premiums.
Prepare journal entries to record: 1. acrrued payrole, 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 expenss, for July - assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.8%: 4. cash payment of all liabilities related to the July Payroll.
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