The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $640,000; Office...
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The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $640,000; Office salaries, $128,000; Federal income taxes withheld, $192,000; State income taxes withheld, $43,000; Social security taxes withheld, $47,616; Medicare taxes withheld, $11,136; Medical insurance premiums, $15,400; Life insurance premiums, $12,300; Union dues deducted, $8,400; and Salaries subject to unemployment taxes, $69,000. The employee pays 40% of medical and life insurance premiums. 2. 1. Prepare the journal entry to record payroll (show Sales and office salaries separately, but you can combine the rest). Hint: employees pay 40% of the medical and insurance premiums Prepare the journal entry to record payroll taxes. Assume that no employee has reached the maximum deduction for social security, and $20,000 of overall salaries are still subject to Federal and State Unemployment taxes at a rate of .6% and 5.4% respectively. 3. Prepare the journal entry to record Employee Benefits for the company. The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $640,000; Office salaries, $128,000; Federal income taxes withheld, $192,000; State income taxes withheld, $43,000; Social security taxes withheld, $47,616; Medicare taxes withheld, $11,136; Medical insurance premiums, $15,400; Life insurance premiums, $12,300; Union dues deducted, $8,400; and Salaries subject to unemployment taxes, $69,000. The employee pays 40% of medical and life insurance premiums. 2. 1. Prepare the journal entry to record payroll (show Sales and office salaries separately, but you can combine the rest). Hint: employees pay 40% of the medical and insurance premiums Prepare the journal entry to record payroll taxes. Assume that no employee has reached the maximum deduction for social security, and $20,000 of overall salaries are still subject to Federal and State Unemployment taxes at a rate of .6% and 5.4% respectively. 3. Prepare the journal entry to record Employee Benefits for the company.
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Answer rating: 100% (QA)
Requirement 1 Total premium paid by employees Premium paid by employees Total premium x 40 Premium paid by employer Total premium x 60 Employee Medical Insurance Payable 15500 40 6200 9300 Employee Li... View the full answer
Related Book For
Accounting and Finance An Introduction
ISBN: 978-1292088297
8th edition
Authors: Peter Atrill, Eddie McLaney
Posted Date:
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