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
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%.

prepare all journal entries.

1) 360,000

2) 217,060

3) 37,140

4) 180,080

Explanation:

1)

To calculate the amount of premium paid by the employee and the employer.

consider employee medical insurance payable ,and employee life insurance payable.

The journal entries for accrual payroll, including employee deductions,

consider sales salaries expense

office salaries expense, social sec taxes payable medicare tax payable, employee income taxes, life insurance payable, union dues, salaries payable.

2)

Journal entry for cash payment of net payroll for month of July

consider salaries payable and cash.

3)

Calculate the unemployment tax amount,

consider state unemployment taxes and federal unemployment taxes  

Journey Entries for accrued employer payroll taxes,

Payroll taxes expenses, social taxes, medicare taxes, state unemployment taxes, federal unemployment taxes, employee medical and life insurance.

4)

Journal entries for cash payment of all libraries.

consider, social medical taxes, employee fed, medical, life and state income taxes  payable.  

the answer is a. $209,000

the answer is a.

by: nicholas dooley