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 2019 appears below. The firm's FUTA tax liability by quarter follows: first quarter, $127.20; second quarter, $127.50; third quarter, $72.00; and fourth quarter, $12.00. The firm made no FUTA deposits in 2019. Date the unemployment tax return January 27, 2020. A check for the balance due will be sent with Form 940.

2. On January 27, 2020, the firm paid the amount shown on line 14, Part 4 of Form 940. In general journal form, record the payment. Use journal page 48.
Analyze:
What is the balance of the Federal Unemployment Tax Payable account after paying the FUTA amount due on January 27, 2020?

Transcribed Image Text:

Wages Pald In Excess of $7,000 State Unemployment Tax Pald Mar. 31 June 30 Sept. 30 Dec. 31 Totals Total Wages Pald 21,200.00 21,250.00 24,500.00 34,800.00 $101,750.00 487.60 $12,500.00 32,800.00 $45,300.00 276.00 46.00 1,298.35