Answer:
1. Accrued payroll, including employee deductions for July.
Dr Wage expense - Sales 300,000
Dr Wage expense - Office 60,000
Cr Federal income taxes withheld payable 90,000
Cr State income taxes withheld payable 20,000
Cr Social security withheld payable 22,320
Cr Medicare withheld payable 5,220
Cr Medical insurance payable 4,200
Cr Life insurance payable 2,400
Cr Union dues payable 1,000
Cr Wages payable 214,860
2. Cash payment of the net payroll (salaries payable) for July.
Dr Wages payable 214,860
Cr Cash 214,860
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 0.8%.
Dr FICA expense 27,540
Dr Federal unemployment tax expense 400
Dr State unemployment tax expense 2,700
Dr Medical insurance expense 2,800
Dr Life insurance expense 1,600
Cr Social security payable 22,320
Cr Medicare payable 5,220
Cr Federal unemployment tax payable 400
Cr State unemployment tax payable 2,700
Cr Medical insurance payable 2,800
Cr Life insurance payable 1,600
4. Cash payment of all liabilities related to the July Payroll.
Dr Federal income taxes withheld payable 90,000
Dr State income taxes withheld payable 20,000
Dr Social security withheld payable 22,320
Dr Social security payable 22,320
Dr Medicare withheld payable 5,220
Dr Medicare payable 5,220
Dr Federal unemployment tax payable 400
Dr State unemployment tax payable 2,700
Dr Medical insurance payable 7,000
Dr Life insurance payable 4,000
Dr Union dues payable 1,000
Cr Cash 180,180