Prestige Travel reports the following summary information in its payroll register for 2007. Prestige Travel pays state
Question:
Prestige Travel reports the following summary information in its payroll register for 2007. Prestige Travel pays state unemployment tax of 2.0% of each employee’s first \($7,000\) of annual gross pay. Prestige Travel also pays federal unemployment tax of 0.8% of each employee’s first \($7,000\) of annual gross pay. Prestige Travel’s Employer Identification Number is 845699482. It is located at 11 Coral Lane, Miami, Florida 33101:
Required
1. Compute the amounts of FUTA and SUTA taxes Prestige Travel owes for each quarter in 2007.
2. Prepare the general journal entry to record Prestige Travel’s FUTA and SUTA taxes for the third quarter (ending on September 30) of 2007. This journal entry is made on September 30, 2007.
3. Prepare the general entry to record Prestige Travel’s deposit of its fourth quarter FUTA and SUTA taxes. This journal entry is made on September 30, 2007.
4. Prepare a Form 940-EZ for Prestige Travel for the year 2007.
Step by Step Answer:
College Accounting Ch 1-14
ISBN: 9780073346892
1st Edition
Authors: John Wild, Vernon Richardson, Ken Shaw