PART 4
-Record all employer's payroll expenses and liabilities for the month of July.
-Record the employer's benefit expense.
-Record the cash payment of all liabilities related to the July payroll.
----THIS IS WHAT I HAVE SO FAR FOR PART 4 PLEASE FINISH AND CORRECT!
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. Req 1 and 2 Reg 3 Req 4 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. Total Premium % Paid by Premium Premium Employees Paid by Employees Employer Employee Medical Insurance Payable Is 7.000 40% 2.800 S 4,200 Employee Life Insurance Payable S 4,000 40% 1,600 S 2,400 Paid by IS S Date General Journal Debit Credit Record journal entry for accrued payroll, including employee deductions, for July. July Sales salaries expense 200,000 31 Office salaries expense 160,000 FICASocial sec. taxes payable 22,320 FICA-Medicare taxes payable 5.220 Employee fed. inc. taxes payable 90.000 Employee state inc. taxes payable 20,000 Employee medical insurance payable 2.800 Employee life insurance payable 1,600 Employee union dues payable 1,000 Record the cash payment of salaries. July Salaries payable 31 Cash 217,060 > 217,060 Req 1 and 2 Reg 3 Reg 4 Using the above information, complete the below table. Tax Amounts Subject to Tax 50,000 Tax Rate Tax Amount S 5.4% S 2.700 State Unemployment Taxes Payable Federal Unemployment Taxes Payable IS 50,000 0.6% S 300 Req 1 and 2 Reg 3 Reg 4 Record the accrued employer payroll taxes and all other employer-paid expenses and the cash payment of all liabilities for July. No Date Debit Credit 1 July 31 22,320 General Journal Payroll taxes expense FICA-Social sec, taxes payable FICA-Medicare taxes payable State unemployment taxes payable Federal unemployment taxes payable Employee medical insurance payable Employee life insurance payable 5,220 2.700 300 2,400 4,200 2 July 31 Employee benefits expense Employee medical insurance payable Employee life insurance payable OOO 3 July 31 44,640 10,440 90.000 FICA Social sec, taxes payable FICA-Medicare taxes payable Employee fed. inc. taxes payable Employee state income taxes payable Employee medical insurance payable Employee life insurance payable Employee union dues payable Federal unemployment taxes payable 20.000 7,000 4,000 1,000
