Jack’s Lawn Service Company has the following information related to its current year payroll as of December 31: a. Federal Unemployment Tax Payable as of December 31, $336.00 b. FUTA taxable earnings limit of $7,000, rate 0.6 percent (0.006) c. First-quarter FUTA taxable liability, $504.00, paid April 30 d. Second-quarter FUTA taxable liability, $168.00 (liability under $500, no payment made) e. Third-quarter FUTA taxable liability, $112.00 (total liability under $500, no payment made) f. Fourth-quarter FUTA taxable liability, $56.00 (payment to be made January of the following year) g. FUTA taxable earnings for the year, $140,000 h. Total Lawn Care Wages, $310,000 i. Jack’s Lawn Service Company EIN, 75-1209347 j. No exempt FUTA payments k. Address: 1515 W. Main Street, Rice, TX 75155 Required Go to www.irs.gov to locate Form 940. Prepare Form 940 and the corresponding 940-V payment voucher for the year. Then record the appropriate FUTA payment entry in the journal.

BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter 8, Problem 5PA
Textbook Problem

Jack’s Lawn Service Company has the following information related to its current year payroll as of December 31:

  1. a. Federal Unemployment Tax Payable as of December 31, $336.00
  2. b. FUTA taxable earnings limit of $7,000, rate 0.6 percent (0.006)
  3. c. First-quarter FUTA taxable liability, $504.00, paid April 30
  4. d. Second-quarter FUTA taxable liability, $168.00 (liability under $500, no payment made)
  5. e. Third-quarter FUTA taxable liability, $112.00 (total liability under $500, no payment made)
  6. f. Fourth-quarter FUTA taxable liability, $56.00 (payment to be made January of the following year)
  7. g. FUTA taxable earnings for the year, $140,000
  8. h. Total Lawn Care Wages, $310,000
  9. i. Jack’s Lawn Service Company EIN, 75-1209347
  10. j. No exempt FUTA payments
  11. k. Address: 1515 W. Main Street, Rice, TX 75155

Required

Go to www.irs.gov to locate Form 940. Prepare Form 940 and the corresponding 940-V payment voucher for the year. Then record the appropriate FUTA payment entry in the journal.

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Chapter 8 Solutions

College Accounting (Book Only): A Career Approach
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