The following monthly data are taken from Ramirez

#2
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.
Directions: Complete the journal entries to record:
(1) accrued payroll, 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 expenses, 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%; and
(4) cash payment of all liabilities related to the July payroll. Date Account Debit 1. July 31 Sales Salaries Expense.....................................................
Office Salaries Expense....................................................
FICA—Social Sec. Taxes Payable.............................
FICA—Medicare Taxes Payable...............................
Employee Fed. Inc. Taxes Payable............................
Employee State Inc. Taxes Payable...........................
Employee Medical Insurance
Payable*............................................................................
Employee Life Insurance Payable**.........................
Employee Union Dues Payable.................................. Credit Salaries Payable..........................................................
To record payroll for period. Date Account Debit Credit 2. July 31 Salaries Payable...............................................................
Cash.............................................................................
To record payment of payroll. Date Account Debit 3. July 31 Payroll Taxes Expense......................................................
FICASocial Sec. Taxes Payable.............................
FICAMedicare Taxes Payable...............................
State Unemployment Taxes Payable.........................
Federal Unemployment Taxes
Payable..............................................................................
To record employer payroll taxes. July 31 Employee Benefits Expense
Employee Medical Insurance
Payable*
Employee Life Insurance Payable**......................... Credit To record costs of employee benefits. Date 4. July
31 Account Debit FICASocial Security Taxes Payable............................
FICAMedicare Taxes Payable.....................................
Employee Fed. Income Taxes Payable............................
Employee State Income Taxes Payable.
Employee Medical Insurance Payable............................
Employee Life Insurance Payable...................................
Employee Union Dues Payable........................................
State Unemployment Taxes Payable...............................
Federal Unemployment Taxes Payable...........................
Cash.............................................................................
To record payment of FICA, income taxes, SUTA, FUTA,
union dues, and insurance premiums. Credit