Small Business Accounting Chapter 11 Homework
On January 31, AC Baking Company prepared its Employer's Annual Federal Unemployment Tax Return, Form 940. During the previous year, the business paid total wages of $468,312 to its 14 employees. Of this amount, $96,000 was subject to FUTA tax. Using a rate of 0.6 percent, determine the FUTA tax owed and the balance due on January 31, when Form 940 was filed. A deposit of $316 was made during the past year that applied to total tax due.
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On June 30, the State Unemployment Tax Payable account in the general ledger of Alan Office Supplies showed a balance of $2,108. This represents the SUTA tax owed for the second quarter of the year. On July 31, the business issued a check to the state unemployment insurance fund for the amount due. Record this payment in general journal form.
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On March 31, the Federal Unemployment Tax Payable account in the general ledger of The Argosy Company showed a balance of $1,489. This represents the FUTA tax owed for the first quarter of the year. On April 30, the firm deposited the amount owed in the First Security National Bank. Record this transaction in general journal form.
Federal unemployment tax payable 1,489 (debit) ?
Kazana Medical Supplies estimates that its office employees will earn $211,000 next year and its factory employees will earn $966,000. The firm pays the following rates for workers' compensation insurance: $0.80 per $100 of wages for the office employees and $8.20 per $100 of wages for the factory employees. Determine the estimated premium for each group of employees and the total estimated premium for next year. (Round "Rate" answers to 3 decimal places. i.e., 12.3% should be entered as 0.123.)
Office 211,000 ??? Factory 966,000 ???
Given the following scenario, choose the best answer. At the end of the quarter, the business owed $2,000 in total payroll taxes. The amount due must be deposited:
on the day the Form 941 for the quarter is due
The payroll register of Big House Cleaning Company showed total employee earnings of $3,300 for the payroll period ended July 14. Required: Compute the employer's payroll taxes for the period. Use rates of 6.2 percent for the employer's share of the social security tax, 1.45 percent for Medicare tax, 0.6 percent for FUTA tax, and 5.4 percent for SUTA tax. All earnings are taxable. Prepare a general journal entry to record the employer's payroll taxes for the period Analyze: Which of the above taxes are paid by the employee and matched by the employer?
Required 1: Social Security 3,300 6.20% Medicare 3,300 1.45% FUTA 3,300 0.60% SUTA 3,300 5.40% Required 2: Social security tax payable $??? (credit) Medicare tax payable $47.85 (credit) Federal unemployment tax payable $19.80 (credit) State unemployment tax payable $178.20 (credit) Analyze: Which of the taxes are paid by the employee and matched by the employer? Social security and Medicare taxes
At the end of the weekly payroll period on June 30, the payroll register of Concord Consultants showed employee earnings of $71,800. Determine the firm's payroll taxes for the period. Use a social security rate of 6.2 percent, Medicare rate of 1.45 percent, FUTA rate of 0.6 percent, and SUTA rate of 5.4 percent. Consider all earnings subject to social security tax and Medicare tax and $41,372 subject to FUTA and SUTA taxes. (Round your answers to 2 decimal places.)
Social Security 71,800 (base) x 6.20% (rate) Medicare 71,800 (base) x 1.45% (rate) FUTA 41,372 (base) x 0.60% (rate) SUTA 41,372 (base) x 5.40% (rate)
After Beam Corporation paid its employees on July 15 and recorded the corporation's share of payroll taxes for the payroll paid that date, the firm's general ledger showed a balance of $20,300 in the Social Security Tax Payable account, a balance of $4,226 in the Medicare Tax Payable account, and a balance of $18,860 in the Employee Income Tax Payable account. On July 16, the business issued a check to deposit the taxes owed in the First Texas Bank. Record this transaction in general journal form.
Social Security Tax Payable 20,300 debit Medicare Tax Payable. 4,226 debit Employee Income Tax Payable 18,860 debit Cash 43,386 credit
On April 30, Chung Furniture Company prepared its state unemployment tax return for the first quarter of the year. The firm had taxable wages of $99,800. Because of a favorable experience rating, Chung pays SUTA tax at a rate of 1.4 percent. How much SUTA tax did the firm owe for the quarter? (Round "SUTA tax rate" answer to 3 decimal places. i.e., 12.3% should be entered as 0.123.)
Taxable wages $99,800 SUTA tax rate 0.014
