The following monthly data are taken from Nunez Company at July 31: Sales salaries, $120,000; Office salaries, $60,000; Federal income taxes withheld, $45,000; State income taxes withheld, $10,000; Social security taxes withheld, $11,160; Medicare taxes withheld, $2,610; 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 forty percent of medical and life insurance premiums.
Prepare 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 employee 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 0.8%; and
(4) Cash payment of all liabilities related to the July payroll.