Problem 11.4A Computing and recording unemployment taxes; completing Form 940. LO 11-6, 11-7

Certain transactions and procedures relating to federal and state unemployment taxes follow for Fashion Sense, a retail store owned by Nancy Roberts. The firms address is 2007 Trendsetter Lane, Dallas, TX 75268-0967. The firms phone number is 972-456-1200.The employers federal and state identification numbers are 75-9462315 and 37-9462315, respectively. Carry out the procedures as instructed in each of the following steps.

1.

Compute the state unemployment insurance tax owed on the employees wages for the quarter ended March 31, 2016. This information will be shown on the employers 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, Fashion Senses 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. (Round ''Rate" answer to 3 decimal places. i.e., 12.3% should be entered as 0.123)

Name of Employee	Total Earnings
Terri Chu	$	6,060
Jeri Guyton		4,025
Gloria Bermudez		4,348
Stacee Scott		5,520
Anita Thomas		4,250
Terri Wong		3,160
Total	$	27,363

Total Amount:

Rate:

State Unemployment Insurance Tax:

2.	On April 30, 2016, 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. (Round your answers to 2 decimal places.)
	Record payment of quarterly SUTA.