ertain transactions and procedures relating to federal and state unemployment ta
ID: 2551964 • Letter: E
Question
ertain transactions and procedures relating to federal and state unemployment taxes follow for Fancy Nancy LLC, a retail store owned by Nancy Roberts. The firm’s address is 2007 Trendsetter Lane, Dallas, TX 75268-0967. The firm’s phone number is 972-456-1200.The employer’s federal and state identification numbers are 75-9462315 and 37-9462315, respectively. Carry out the procedures as instructed in each of the following steps.
Assume that all wages have been paid and that all quarterly payments have been submitted to the state as required. The payroll information for 2019 appears below. The federal tax deposits were submitted as follows: a deposit of $165.00 on April 21, a deposit of $76.80 on July 22, and a deposit of $52.20 on October 21.
Required:
In general journal form, record issuance of a check on January 28, 2020, for the balance of FUTA tax due for 2019. (Round your answers to 2 decimal places.)
Wages Paid Wages Paid
in Excess
of $7,000 State Unemployment Tax Paid Mar. 31 $ 27,500.00 -0- $ 467.50 June 30 30,800.00 18,000.00 217.60 Sept. 30 38,700.00 30,000.00 147.90 Dec. 31 49,000.00 45,000.00 68.00 Totals $ 146,000.00 $ 93,000.00 $ 901.00
Explanation / Answer
Quarter Ended Total Wages Paid Wages Paid in Excess of $7000 State Unemployment Tax Paid Wages Paid below of $7000 FUTA@0.60% Payment Made for FUTA Balance for FUTA Payment Mar-31 $27,500 $0 $468 $27,500 $165 $165 $0 Jun-30 $30,800 $18,000 $218 $12,800 $77 $77 $0 Sep-30 $38,700 $30,000 $148 $8,700 $52 $52 $0 Dec-31 $49,000 $45,000 $68 $4,000 $24 $24 Date General Journal Debit Credit 28/01/2020 Federal Unemployment Tax Payable (FUTA) $24 Cash $24 To Record of FUTA paid
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