The following monthly data are taken from Ramirez Company atJuly 31: Sales salaries, $200,000; Office salaries, $160,000;Federal income taxes withheld, $90,000; State income taxeswithheld, $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. Theemployee pays 40% of medical and life insurance premiums.
Record the accrued employer payroll taxes and all otheremployer-paid expenses and the cash payment of all liabilities forJuly-assume that FICA taxes are identical to those on employees andthat SUTA taxes are 5.4% and FUTA taxes are 0.6%
The following monthly data are taken from Ramirez Company atJuly 31: Sales salaries, $200,000; Office salaries, $160,000;Federal income taxes withheld, $90,000; State income taxeswithheld, $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. Theemployee pays 40% of medical and life insurance premiums.
Record the accrued employer payroll taxes and all otheremployer-paid expenses and the cash payment of all liabilities forJuly-assume that FICA taxes are identical to those on employees andthat SUTA taxes are 5.4% and FUTA taxes are 0.6%
Related questions
The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.: Salaries: Sales salaries $325,000 Warehouse salaries 196,000 Office salaries 131,000 $652,000 Deductions: Income tax withheld $119,000 Social security tax withheld 39,120 Medicare tax withheld 9,780 Retirement savings 14,344 Group insurance 11,736 $193,980 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.6% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
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| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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A. December 30, to record the payroll. B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. On page 11 of the journal: December 30, to record the payroll. B. On page 12 of the journal: January 5, to record the employerâs payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.
A company's had fixed interest expense of $3,300, its incomebefore interest expense and income taxes is $16,200, and its netincome is $6,600. The company's times interest earned ratioequals: |
2.45.
0.50.
4.91.
2.00.
0.20.
A company's income before interest expense and income taxes is$225,000 and its interest expense is $75,000. Its times interestearned ratio is: |
2.67
0.99
3.00
0.33
1.68
A company's fixed interest expense is $9,000, its income beforeinterest expense and income taxes is $38,250. Its net income is$11,850. The company's times interest earned ratio equals: |
0.235.
0.76.
3.23.
4.25.
0.31.
An employee earned $43,600 during the year working for anemployer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax ratefor Medicare is 1.45%. The employee's annual FICA taxes amountis: |
$632.20.
$2,703.20.
$6,670.80.
$6,670.80.
$3,335.40.
An employee earned $5,300 working for an employer in the currentyear. The current rate for FICA Social Security is 6.2% payable onearnings up to $117,000 maximum per year and the rate for FICAMedicare 1.45%. The employer's total FICA payroll tax for thisemployee is: |
$405.45.
Zero, since the FICA tax is a deduction from an employee's pay,and not an employer tax.
$76.85.
$328.60.
$810.90.
An employee earned $62,400 during the year working for anemployer. The FICA tax rate for Social Security is 6.2% and theFICA tax rate for Medicare is 1.45%. The current FUTA tax rate is0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes areapplied to the first $7,000 of an employee's pay. What is theamount of total unemployment taxes the employee mustpay?
$101.50
$56.00
$378.00
$434.00
$0.00
Employees earn vacation pay at the rate of one day per month.During the month of July, 16 employees qualify for one vacation dayeach. Their average daily wage is $91 per day. What is the amountof vacation benefit expense to be recorded for the month ofJuly? |
$16.0
$14,560.0
$1,456.0
$91.0
$145.6
A company estimates that warranty expense will be 4% of sales.The company's sales for the current period are $233,000. Thecurrent period's entry to record the warranty expense is:
Debit Warranty Expense $9320 credit Sales $9320.
Debit Warranty Expense $9320 credit Estimated Warranty Liability$9320.
Debit Estimated Warranty Liability $9320 credit Warranty Expense$7400.
Debit Estimated Warranty Liability $9320 credit Cash $9320.
No entry is recorded until the items are returned for warrantyrepairs.
A company has a selling price of $2,050 each for its printers.Each printer has a 2 year warranty that covers replacement ofdefective parts. It is estimated that 3% of all printers sold willbe returned under the warranty at an average cost of $155 each.During November, the company sold 35,000 printers, and 450 printerswere serviced under the warranty at a total cost of $60,000. Thebalance in the Estimated Warranty Liability account at November 1was $31,500. What is the company's warranty expense for the monthof November? |
$69,750
$60,000
$81,375
$162,750
$28,500
An employee earns $6,500 per month working for an employer. TheFICA tax rate for Social Security is 6.2% and the FICA tax rate forMedicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTAtax rate is 5.4%. Both unemployment taxes are applied to the first$7,000 of an employee's pay. The employee has $222 in federalincome taxes withheld. The employee has voluntary deductions forhealth insurance of $190 and contributes $95 to a retirement planeach month. What is the amount of net pay for the employee for themonth of January? (Round your intermediate calculations totwo decimal places.) |
$5,495.75
$5,590.00
$5,144.75
$5,092.75
$5,443.75
