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

Go to 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.

  • CreatedOctober 21, 2014
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