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

Exercise 36

This is a continuation of Problem 11.4A for Fashion Sense; computing and recording unemployment taxes; completing Form 940.
1. Complete Form 940, the Employer's Annual Federal Unemployment Tax Return. Assume that all wages have been paid and that all quarterly payments have been submitted to the state as required. The payroll information for 2013 appears below. The required federal tax deposit forms and checks were submitted as follows: a deposit of $206.90 on April 21, a deposit of $198.72 on July 22, and a deposit of $240 on October 21. Date the unemployment tax return January 28, 2014. A check for the balance due as per line 14, Part 4, will be sent with Form 940.

2. In general journal form, record issuance of a check on January 28, 2014, for the balance of FUTA tax due for 2013. Use journal page 15.
Analyze: What total debits were made to liability accounts for entries you recorded in Problem 11.4A and Problem 11.5A?