College Accounting 2nd Edition by David Haddock, John Price,Michael Farina

Exercise 12

This is a continuation of Problem 11.2A for Fronke Consulting Company; recording payment of taxes and preparing employer's quarterly federal tax return.
1. On July 15, the firm issued a check to deposit the federal income tax withheld and the FICA tax (both employee and employer shares for the third month [June]). Based on your computations in Problem 11.2A, record the issuance of the check in general journal form. Use journal page 24.
2. Complete Form 941 in accordance with the discussions in this chapter. Use a 12.4 percent social security rate and a 2.9 percent Medicare rate in computations. Use the following address for the company: 2300 East Ocean Blvd., Long Beach, CA 90802. Use 75-4444444 as the employer identification number. Date the return July 31, 2013. Mr. Fronke's phone number is 562-709-3654.
Analyze: Based on the entries that you have recorded, what is the balance of the Employee Income Tax Payable account at July 15?