Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 9-8 Recording payroll LO P2, P3 The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $200,000; Office salaries, $160,000;
Exercise 9-8 Recording payroll LO 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. 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 and cash payment of the net payroll for July. 3. Using the above information, complete the below table. 4. Record the accrued employer payroll taxes and all other employer-paid expenses and the cash payment of all liabilities 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%. July-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. No Credit Date July 31 Debit 37,140 22,320 General Journal Payroll taxes expense FICASocial sec. taxes payable FICAMedicare taxes payable State unemployment taxes payable Federal unemployment taxes payable Employee medical insurance payable 5,220 2,700 300 4,200 X Employee life insurance payable 2,400 X July 31 FICASocial sec. taxes payable Employee medical insurance payable FICA-Medicare taxes payable Employee medical insurance payable 3 July 31 FICASocial sec. taxes payable FICAMedicare taxes payable Federal unemployment taxes payable Employee state income taxes payable Employee medical insurance payable Employee life insurance payable Employee union dues payable Federal unemployment taxes payable Employee medical insurance payable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started