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 20X1 appears below. The firm’s FUTA tax liability by quarter follows: first quarter, $121.80; second quarter, $106.50; third quarter, $87.00; and fourth quarter, $24.00. The firm made the correct 1st and 2nd quarter FUTA deposits. Date the unemployment tax return January 27, 20X2. A check for the balance due will be sent with Form 940.

2. On January 27, 20X2, the firm paid the amount shown on line 14, Part 4 of Form 940. In general journal form, record the payment. 

Analyze: 

What is the balance of the Federal Unemployment Tax Payable account after paying the FUTA amount due on January 27, 20X2?

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Quarter Ended Mar. 31 June 30 Sept. 30 Dec. 31 Totals Total Wages Paid $ 20,300.00 21,250.00 24,500.00 28,000.00 $ 94,050.00 Wages Paid in Excess of $7,000 -0- $ 3,500.00 10,000.00 24,000.00 $37,500.00 State Unemployment Tax Paid $ 466.90 408.25 333.50 92.00 $1,300.65