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 federal tax deposits were submitted as follows: a deposit of $151.20 on April 21, a deposit of $124.80 on July 22, and a deposit of $72.00 on October 21. Date the unemployment tax return January 28, 20X2. 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, 20X2, for the balance of FUTA tax due for 20X1. 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?

Data from in 11.4A

Certain transactions and procedures relating to federal and state unemployment taxes follow for Robin’s Nest LLC, a retail store owned by Robin Roberts. The firm’s address is 2007 Lovely Lane, Dallas, TX 75268-0967. The firm’s phone number is 972-456-1200. The employer’s federal and state identification numbers are 75-9462315 and 37-9462315, respectively. Carry out the procedures as instructed in each of the following steps.

INSTRUCTIONS
1. Compute the state unemployment insurance tax owed on the employees’ wages for the quarter ended March 31, 20X1. This information will be shown on the employer’s quarterly report to the state agency that collects SUTA tax. The employer has recorded the tax on each payroll date. Although the state charges a 5.4 percent unemployment tax rate, Robin’s Nest LLC’s rate is only 1.7 percent because of its experience rating. The employee earnings for the first quarter are shown below. All earnings are subject to SUTA tax.

2. On April 30, 20X1, the firm issued a check to the state employment commission for the amount computed above. In general journal form, record the issuance of the check. Use journal page 82.

Transcribed Image Text:

Quarter Ended Mar. 31 June 30 Sept. 30 Dec. 31 Totals Total Wages Paid $ 25,200.00 30,800.00 37,000.00 49,000.00 $142,000.00 Wages Paid in Excess of $7,000 $10,000.00 25,000.00 42,000.00 $77,000.00 State Unemployment Tax Paid $ 428.40 353.60 204.00 119.00 $1,105.00