An appliance company has three installers. Larry earns $395 per week, Curly earns $440 per week, and Moe earns $575 per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings.(a)How much SUTA and FUTA tax (in $) does the company owe for the first quarter of the year?total SUTA tax$  total FUTA tax$  (b)How much SUTA and FUTA tax (in $) does the company owe for the second quarter of the year?total SUTA tax$  total FUTA tax$

Question
Asked Feb 20, 2020
5 views
An appliance company has three installers. Larry earns $395 per week, Curly earns $440 per week, and Moe earns $575 per week. The company's SUTA rate is 5.4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings.
(a)
How much SUTA and FUTA tax (in $) does the company owe for the first quarter of the year?
total SUTA tax$  total FUTA tax$  
(b)
How much SUTA and FUTA tax (in $) does the company owe for the second quarter of the year?
total SUTA tax$  total FUTA tax$  
check_circle

Expert Answer

Step 1

(a)

calculate SUTA and FUTA tax (in $) does the company owe for the first quarter of the year and total SUTA tax and FUTA tax:

Note: Each quater has an approximate 13 weeks

Accounting homework question answer, step 1, image 1

 

...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Dallas Company's current ratio is 4 to 3.  The company is negotiating a loan, and the company's mana...

A: Current ratio = Current assets / Current liabilities  Thus ratio signifies the ability of the firm t...

question_answer

Q: Return on Investment B. Commercial Division, Internet Division, Retail Division

A: Compute the return on investment:  

question_answer

Q: Earnings per Share and Multiple-Step Income StatementThe following summarized data relate to Bowden ...

A: Multi-step income statement: The income statement represented in multi-steps with several subtotals,...

question_answer

Q: PARRISH 7-9 INVENTORY WITH DISCOUNTS-GROSS/NET Please show and explain how to arrive at the correct ...

A: As per the net method, the company records the amount of purchase by deducting any potential discoun...

question_answer

Q: Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscap...

A: 5a. Following are the calculation of sum of all the creditors’ balances in the subsidiary ledger:

question_answer

Q: On January 1, 2021, Monty Corp. had 459,000 shares of common stock outstanding. During 2021, it had ...

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the que...

question_answer

Q: ASSETS EQUITY LIABILITIES Cash Early, Capital Early, Withdrawals Service Revenue Rent Expens Account...

A: Cash is being invested in the business. Since, Cash is an asset; we debited Cash account to show the...

question_answer

Q: Chrome- CengageNOWv2| Online teaching and learning resource from Cengage Learning v2.cengagenow.com/...

A: Date Accounts title and explanation Debit ($) Credit ($) 1-Dec Stock Dividends (470,000 x 1% x $13...

question_answer

Q: Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for May, Jun...

A: It is a tool which indicates the amount of available cash is appropriate or not for the operational ...