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Using the above information, complete the below table and prepare the journal entries to record accrued payroll, i

Using the above information, complete the below table and prepare the journal entries to record accrued payroll, i

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
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The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $380,000; Office salaries, $76,000; Federal income taxes withheld, $114,000; State income taxes withheld, $25,500; Social security taxes withheld, $28,272; Medicare taxes withheld, $6,612; Medical insurance premiums, $9,000; Life insurance premiums, $6,000; Union dues deducted, $3,000; and Salaries subject to unemployment taxes, $54,000. 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, including employee deductions, and cash payment of the net payroll (salaries payable) for July. 3. Using the above information, complete the below table. 4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Using the above information, complete the below table and prepare the journal entries to record accrued payroll, including employee deductions, and cash payment of the net payroll (salaries payable) for July. Date Total Premium % Paid by Employees Premium Paid by Employees Premium Paid by Employer Employee Medical Insurance Payable Employee Life Insurance Payable $ 9,000 40% $ 3,600 $ 5,400 $ 6,000 40% $ 2,400 $ 3,600 General Journal Debit Credit Record journal entry for accrued payroll, including employee deductions, for July. July 31 Sales salaries expense 380,000 Office salaries expense 76,000 FICA-Social security taxes payable 28,272 FICA Medicare taxes payable 6,612 Employee federal income taxes 114,000 payable Employee state income taxes payable ✓ Employee medical insurance payable Employee life insurance payable ✓ Employee union dues payable ✓ Salaries payable Record the cash payment of salaries. July 31 Salaries payable 456,000
Transcribed Image Text:The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $380,000; Office salaries, $76,000; Federal income taxes withheld, $114,000; State income taxes withheld, $25,500; Social security taxes withheld, $28,272; Medicare taxes withheld, $6,612; Medical insurance premiums, $9,000; Life insurance premiums, $6,000; Union dues deducted, $3,000; and Salaries subject to unemployment taxes, $54,000. 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, including employee deductions, and cash payment of the net payroll (salaries payable) for July. 3. Using the above information, complete the below table. 4. Record the accrued employer payroll taxes and other related employment expenses and the cash payment of all liabilities related to the July payroll-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Using the above information, complete the below table and prepare the journal entries to record accrued payroll, including employee deductions, and cash payment of the net payroll (salaries payable) for July. Date Total Premium % Paid by Employees Premium Paid by Employees Premium Paid by Employer Employee Medical Insurance Payable Employee Life Insurance Payable $ 9,000 40% $ 3,600 $ 5,400 $ 6,000 40% $ 2,400 $ 3,600 General Journal Debit Credit Record journal entry for accrued payroll, including employee deductions, for July. July 31 Sales salaries expense 380,000 Office salaries expense 76,000 FICA-Social security taxes payable 28,272 FICA Medicare taxes payable 6,612 Employee federal income taxes 114,000 payable Employee state income taxes payable ✓ Employee medical insurance payable Employee life insurance payable ✓ Employee union dues payable ✓ Salaries payable Record the cash payment of salaries. July 31 Salaries payable 456,000
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