Sharon’s Dance Studio has the following information related to its current year payroll as of December 31: a. Federal Unemployment Tax Payable as of December 31, $110.00 b. FUTA taxable earnings limit of $7,000, rate 0.6 percent (0.006) c. First-quarter FUTA taxable liability, $520.00, paid April 30 d. Second-quarter FUTA taxable liability, $45.00 (liability under $500, no payment made) e. Third-quarter FUTA taxable liability, $39.00 (total liability under $500, no payment made) f. Fourth-quarter FUTA taxable liability, $26.00 (payment to be made January of the following year) g. FUTA taxable earnings for the year, $105,000 h. Total Dance Instructor Wages, $195,000 i. Sharon’s Dance Studio EIN, 75-9182736 j. No exempt FUTA payments k. Address: 392 E. Michigan Ave., Smithville, TX 78957 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 5PB
Textbook Problem

Sharon’s Dance Studio has the following information related to its current year payroll as of December 31:

  1. a. Federal Unemployment Tax Payable as of December 31, $110.00
  2. b. FUTA taxable earnings limit of $7,000, rate 0.6 percent (0.006)
  3. c. First-quarter FUTA taxable liability, $520.00, paid April 30
  4. d. Second-quarter FUTA taxable liability, $45.00 (liability under $500, no payment made)
  5. e. Third-quarter FUTA taxable liability, $39.00 (total liability under $500, no payment made)
  6. f. Fourth-quarter FUTA taxable liability, $26.00 (payment to be made January of the following year)
  7. g. FUTA taxable earnings for the year, $105,000
  8. h. Total Dance Instructor Wages, $195,000
  9. i. Sharon’s Dance Studio EIN, 75-9182736
  10. j. No exempt FUTA payments
  11. k. Address: 392 E. Michigan Ave., Smithville, TX 78957

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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