Could someone help fill this out. I have no idea how to finish it. The payroll register is wrong for the third entries. I need help fixing it. Thank you

BILLY'S MARKET This Comprehensive Review Problem aids in putting the pieces of payroll together. In this project, you are the bookkeeper and have the responsibility of recording the payroll in the payroll register, recording the payroll in the journal, paying the payroll, recording the employer's tax responsibilities, posting to the ledger accounts and paying the tax deposits as well as completing the quarterly report Billy's Market, owned by Billy Timberlake, is located at 1456 Marilyn Lane Boston, MA 01975. His employer identification number is 42-4583312. Please assume the following: FICA: OASDI, 6.2% on $106,800 per employee per year 1 FICA: Medicare, 1.45% on all earnings per employee per year 2. SUTA: 4.9% (due to favorable merit rating), on first $7,000 per employee per year 3. FUTA: .8% on first $7,000 per employee per year 4. 5 Employees are paid monthly. The payroll is recorded on the last day of each month and paid on the first day of the next month. FIT Table from IRS Circular E, Employer's Tax Guide (attached) 6 State income tax is 7.0% on all earnings 7. Employee paychecks are numbered consecutively starting with 63 8 The following are the employees of Billy's Market along with their monthly salary exemptions and other information: SALARY PER MONTH January February Salary Category March Moe Frank -0 $2,745 $2,770 $2,800 Sales Salaries Mary Jones M-2 $3,050 $3,160 $3,230 Market Salaries Linda Liu M-1 $3,280 $3,300 $3,395 Sales Salaries BILLY'S MARKET Partial Listing of Ledger Accounts with Balances On December 31, 2011 Credit Debit Cash 83,625.00 Payroll Checking Cash FICA-OASDI Payable 975.90 FICA-Medicare Payable 247.50 FIT Payable 860.00 SIT Payable 192.50 FUTA Tax Payable 115.00 SUTA Tax Payable 705.00 Wages and Salaries Payable Payroll Tax Expense Market Salaries Expense Sales Salaries Expense Using the general journal, ledger accounts, payroll register, and Form 941 provided, please complete the following: 2012 Jan. 5 Record and post the entry to pay the December 2011 Form 941 taxes. 5 Record and post the entry to pay the State Income Tax from last month's payroll Record and post the entry to pay the State Unemployment Tax due from last quarter 31 Record and post the entry to pay the Federal Unemployment Tax due from last quarter Complete the payroll register for the January payroll and record and post the entry to record the payroll 31 Record and post the entry to record the employer's payroll tax expense for the January payroll. 31 Feb. Record and post the entry to transfer cash for the January net pay from Cash to Payroll Checking Cash. 1 Record and post the entry to pay the employees. 1 Record and post the entry to pay January's Form 941 taxes. 15 15 Record and post the entry to pay January's State Income Tax. 28 Complete the payroll register for the February payroll and record and post the entry to record the payroll 28 Record and post the entry to record the employer's payroll tax expense for the February payroll Mar Record and post the entry to transfer cash for the February net pay from Cash to Payroll Checking Cash. 1 Record and post the entry to pay the employees 1 Record and post the entry to pay February's Form 941 taxes 15 Record and post the entry to pay February's State Income Tax. 15 Complete the payroll register for the March Payroll and record and post 31 the entry to record the payrol Record and post the entry to record the employer's payroll tax expense 31 for the March payroll Apr Record and post the entry to transfer cash for the March net pay from Cash to Payrol Checking Cash. 1 Record and post the entry to pay the employees. 1 Record and post the entry to pay March's Form 941 Taxes. 15 Record and post the entry to pay March's State Income Tax 15 Record and post the entry to pay the quarter's State Unemployment Tax 30 Complete Form 941 for the first quarter 30 Billy's Market General Journal Page 3 Date Account Titles and Descriptions Dr. Cr PR aDIa Jani5 EICA OESDI ayable FICd Mecira're Danl FIT a15 90 213 payarle Cash Reara Focm 941 3011 ense Cash Record Dument do slr & 2011 Jan 31 TA Tay DaLahle 105 00 4tHh RUAITER Tax dui doll TH Tes Payaole Reco 4ah auactes Tax cue doI 941 for 2012: Employer's QUARTERLY Federal Tax Return Decartment af he Treasury interna Revenue Service 950112 Form Rev January 2012 OMB No 1545.0029 Employer idemtification number Report for this Quarter of 2012 (Check one.) (EIN llby Timberlake Rllu's Narket Se Marilun lane ostan Name inot your trade name 1: January, February, March frade name any 2: April, May, June 3: July, August, September Address 4: October, November, December Nurbe Seel Sute or 0om umbe MA O915 Prior-year forms are available at www.rs goviform941 Sale Read the separate instructions before you complete Form 941 Type or print within the boxes Part 1: Answer these questions for this quarter. Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 1 1 2 Wages, tips, and other compensation 2 Income tax withheld from wages, tips, and other compensation 3 3 4 If no wages, tips, and otheer compensation are subject to social security or Medicare tax Check and go to line 6. Column Column 2 Taxable social security wages Sa .124 Taxable social security tips 5b .124 Taxable Medicare wages & tips 5c x .029 5d Add Column 2 line 5a, Column 2 line 5b, and Column 2 line 5c 5d 5e Section 3121(a) Notice and Demand-Tax due on unreported tips (see instructions) 50 Total taxes before adjustments (add lines 3, Sd, and Se) Current quarter's adjustment for fractions of cents 7 7 Current quarter's adjustment for sick pay 8 Current quarter's adjustments for tips and group-term life insurance 9 9 10 Total taxes after adjustments. Combine hnes 6 through 9 10 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayment applied from Form 941-X or Form 944-X 11 11 COBRA premium assistance payments (see instructions) 12a 12a 12b Number of individuals provided COBRA premium assistance 13 Add lines 11 and 12a 13. Balance due. If line 10 s more than line 13, enter the difference and see instructions 14 14 15 Overpayment. If line 13 is more than line 10. enter the difference Check one: Appy o nestLatum Serd a eund You MUST complete both pages of Form 941 and SIGN it Next For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher, Form 941 Rev 1-2012 Cat No. 170012 950212 Name inot your raue name Employer identitication number EIN) Part 2 Tell us about your deposit schedule and tax lability for this quarter. If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see Pub. 15 (Circular E), section 11. 16 Check one: Line 10 on this return is less than $2,500 or line 10 on the return lor the prior quarter was less than $2,500, and you did not incur a $100.000 next-day deposit obilgalion during the current quarter. if ne 0 lo the or o auarter was ess than $2 500 out ine 0 on trs relun S'00 000 orore you must prov de, a recora ol your teaera ta aolly you are a moriny scredule cepostor compiete Ire depost schedue eow. you are a sem weey scneoue cepos1or attach Scredue B Form g41) Go to Part 3 You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total ablity lor the quarter, then go to Part 3 Tax liability: Month 1 Month 2 Month 3 Total liability tor quarter Total must equal line 10 You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule 8 (Form 94 1) Report of Tax Liabity lor Semiweekly Schedule Depositors, and attach it to Form 941 Tell us about your business. If a question does NOT apply to your business, leave it blank 17 If your business has closed or you stopped paying wages Check here. and enter the final date you paid wages 18 If you are a seasonal employer and you do not have to file a return for every quarter of the year Check here Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS7 See the instructions for details Yes Des gnee's name and phone number Select a 5-digit Personal Identification Number (PINI to use when talk ng to the IRS No. Part 5 Sign here. You MUST complete both pages of Form 941 and SIGN it. Under penalties of penury, I declare Inal have examined this return, including accompanying schedules and statements. and to the best of my know edge and beliel, t is true. corract and complete Declaration of praparer (ather than taxpayer)5 based on ail information of which preparer has any knowledge Print your name here X Sign your name here Print your ttle here Date Best daytime phone Paid Preparer Use Only Check if you are self-employed Preparer's name PTIN Preparer's signature Date Firm's name (or yours it self-amployed) EIN Address Phone City State ZIP code Page 2 Form 941 (Rev 1-2012) COMPREHENSIVE REVIEW PROBLEM Billy's Market AYROL IEG3rEH T Ea ga Earings De Aew arce & Cumilal Eaning FICA Pa Ma Sa3 ey Saes s ans ar o.me Grass Linam FIT ST 4a as OASDI OASD ce inh L M 214 415 31/09 elt Arve blD L E LLI glA: as ca ton ManaM2 BILLY'S MARKET This Comprehensive Review Problem aids in putting the pieces of payroll together. In this project, you are the bookkeeper and have the responsibility of recording the payroll in the payroll register, recording the payroll in the journal, paying the payroll, recording the employer's tax responsibilities, posting to the ledger accounts and paying the tax deposits as well as completing the quarterly report Billy's Market, owned by Billy Timberlake, is located at 1456 Marilyn Lane Boston, MA 01975. His employer identification number is 42-4583312. Please assume the following: FICA: OASDI, 6.2% on $106,800 per employee per year 1 FICA: Medicare, 1.45% on all earnings per employee per year 2. SUTA: 4.9% (due to favorable merit rating), on first $7,000 per employee per year 3. FUTA: .8% on first $7,000 per employee per year 4. 5 Employees are paid monthly. The payroll is recorded on the last day of each month and paid on the first day of the next month. FIT Table from IRS Circular E, Employer's Tax Guide (attached) 6 State income tax is 7.0% on all earnings 7. Employee paychecks are numbered consecutively starting with 63 8 The following are the employees of Billy's Market along with their monthly salary exemptions and other information: SALARY PER MONTH January February Salary Category March Moe Frank -0 $2,745 $2,770 $2,800 Sales Salaries Mary Jones M-2 $3,050 $3,160 $3,230 Market Salaries Linda Liu M-1 $3,280 $3,300 $3,395 Sales Salaries BILLY'S MARKET Partial Listing of Ledger Accounts with Balances On December 31, 2011 Credit Debit Cash 83,625.00 Payroll Checking Cash FICA-OASDI Payable 975.90 FICA-Medicare Payable 247.50 FIT Payable 860.00 SIT Payable 192.50 FUTA Tax Payable 115.00 SUTA Tax Payable 705.00 Wages and Salaries Payable Payroll Tax Expense Market Salaries Expense Sales Salaries Expense Using the general journal, ledger accounts, payroll register, and Form 941 provided, please complete the following: 2012 Jan. 5 Record and post the entry to pay the December 2011 Form 941 taxes. 5 Record and post the entry to pay the State Income Tax from last month's payroll Record and post the entry to pay the State Unemployment Tax due from last quarter 31 Record and post the entry to pay the Federal Unemployment Tax due from last quarter Complete the payroll register for the January payroll and record and post the entry to record the payroll 31 Record and post the entry to record the employer's payroll tax expense for the January payroll. 31 Feb. Record and post the entry to transfer cash for the January net pay from Cash to Payroll Checking Cash. 1 Record and post the entry to pay the employees. 1 Record and post the entry to pay January's Form 941 taxes. 15 15 Record and post the entry to pay January's State Income Tax. 28 Complete the payroll register for the February payroll and record and post the entry to record the payroll 28 Record and post the entry to record the employer's payroll tax expense for the February payroll Mar Record and post the entry to transfer cash for the February net pay from Cash to Payroll Checking Cash. 1 Record and post the entry to pay the employees 1 Record and post the entry to pay February's Form 941 taxes 15 Record and post the entry to pay February's State Income Tax. 15 Complete the payroll register for the March Payroll and record and post 31 the entry to record the payrol Record and post the entry to record the employer's payroll tax expense 31 for the March payroll Apr Record and post the entry to transfer cash for the March net pay from Cash to Payrol Checking Cash. 1 Record and post the entry to pay the employees. 1 Record and post the entry to pay March's Form 941 Taxes. 15 Record and post the entry to pay March's State Income Tax 15 Record and post the entry to pay the quarter's State Unemployment Tax 30 Complete Form 941 for the first quarter 30 Billy's Market General Journal Page 3 Date Account Titles and Descriptions Dr. Cr PR aDIa Jani5 EICA OESDI ayable FICd Mecira're Danl FIT a15 90 213 payarle Cash Reara Focm 941 3011 ense Cash Record Dument do slr & 2011 Jan 31 TA Tay DaLahle 105 00 4tHh RUAITER Tax dui doll TH Tes Payaole Reco 4ah auactes Tax cue doI 941 for 2012: Employer's QUARTERLY Federal Tax Return Decartment af he Treasury interna Revenue Service 950112 Form Rev January 2012 OMB No 1545.0029 Employer idemtification number Report for this Quarter of 2012 (Check one.) (EIN llby Timberlake Rllu's Narket Se Marilun lane ostan Name inot your trade name 1: January, February, March frade name any 2: April, May, June 3: July, August, September Address 4: October, November, December Nurbe Seel Sute or 0om umbe MA O915 Prior-year forms are available at www.rs goviform941 Sale Read the separate instructions before you complete Form 941 Type or print within the boxes Part 1: Answer these questions for this quarter. Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 1 1 2 Wages, tips, and other compensation 2 Income tax withheld from wages, tips, and other compensation 3 3 4 If no wages, tips, and otheer compensation are subject to social security or Medicare tax Check and go to line 6. Column Column 2 Taxable social security wages Sa .124 Taxable social security tips 5b .124 Taxable Medicare wages & tips 5c x .029 5d Add Column 2 line 5a, Column 2 line 5b, and Column 2 line 5c 5d 5e Section 3121(a) Notice and Demand-Tax due on unreported tips (see instructions) 50 Total taxes before adjustments (add lines 3, Sd, and Se) Current quarter's adjustment for fractions of cents 7 7 Current quarter's adjustment for sick pay 8 Current quarter's adjustments for tips and group-term life insurance 9 9 10 Total taxes after adjustments. Combine hnes 6 through 9 10 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayment applied from Form 941-X or Form 944-X 11 11 COBRA premium assistance payments (see instructions) 12a 12a 12b Number of individuals provided COBRA premium assistance 13 Add lines 11 and 12a 13. Balance due. If line 10 s more than line 13, enter the difference and see instructions 14 14 15 Overpayment. If line 13 is more than line 10. enter the difference Check one: Appy o nestLatum Serd a eund You MUST complete both pages of Form 941 and SIGN it Next For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher, Form 941 Rev 1-2012 Cat No. 170012 950212 Name inot your raue name Employer identitication number EIN) Part 2 Tell us about your deposit schedule and tax lability for this quarter. If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see Pub. 15 (Circular E), section 11. 16 Check one: Line 10 on this return is less than $2,500 or line 10 on the return lor the prior quarter was less than $2,500, and you did not incur a $100.000 next-day deposit obilgalion during the current quarter. if ne 0 lo the or o auarter was ess than $2 500 out ine 0 on trs relun S'00 000 orore you must prov de, a recora ol your teaera ta aolly you are a moriny scredule cepostor compiete Ire depost schedue eow. you are a sem weey scneoue cepos1or attach Scredue B Form g41) Go to Part 3 You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total ablity lor the quarter, then go to Part 3 Tax liability: Month 1 Month 2 Month 3 Total liability tor quarter Total must equal line 10 You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule 8 (Form 94 1) Report of Tax Liabity lor Semiweekly Schedule Depositors, and attach it to Form 941 Tell us about your business. If a question does NOT apply to your business, leave it blank 17 If your business has closed or you stopped paying wages Check here. and enter the final date you paid wages 18 If you are a seasonal employer and you do not have to file a return for every quarter of the year Check here Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS7 See the instructions for details Yes Des gnee's name and phone number Select a 5-digit Personal Identification Number (PINI to use when talk ng to the IRS No. Part 5 Sign here. You MUST complete both pages of Form 941 and SIGN it. Under penalties of penury, I declare Inal have examined this return, including accompanying schedules and statements. and to the best of my know edge and beliel, t is true. corract and complete Declaration of praparer (ather than taxpayer)5 based on ail information of which preparer has any knowledge Print your name here X Sign your name here Print your ttle here Date Best daytime phone Paid Preparer Use Only Check if you are self-employed Preparer's name PTIN Preparer's signature Date Firm's name (or yours it self-amployed) EIN Address Phone City State ZIP code Page 2 Form 941 (Rev 1-2012) COMPREHENSIVE REVIEW PROBLEM Billy's Market AYROL IEG3rEH T Ea ga Earings De Aew arce & Cumilal Eaning FICA Pa Ma Sa3 ey Saes s ans ar o.me Grass Linam FIT ST 4a as OASDI OASD ce inh L M 214 415 31/09 elt Arve blD L E LLI glA: as ca ton ManaM2