[The following information applies to the questions displayed below.] A payroll summary for Mark Consulting Company, owned by Mark Fronke, for the quarter ending June
[The following information applies to the questions displayed below.]
A payroll summary for Mark Consulting Company, owned by Mark Fronke, for the quarter ending June 30, 20X1, appears below. The firm made the required tax deposits as follows:
For April taxes, paid on May 15.
For May taxes, paid on June 17.
| Date Wages Paid | | Total Earnings | Social Security Tax Deducted | Medicare Tax Deducted | Income Tax Withheld |
| April | 8 | | $ | 2,402.00 | | $ | 148.92 | | $ | 34.83 | | $ | 238.00 | |
| | 15 | | | 2,490.00 | | | 154.38 | | | 36.11 | | | 245.00 | |
| | 22 | | | 2,402.00 | | | 148.92 | | | 34.83 | | | 238.00 | |
| | 29 | | | 2,446.00 | | | 151.65 | | | 35.47 | | | 242.00 | |
| | | | $ | 9,740.00 | | $ | 603.87 | | $ | 141.24 | | $ | 963.00 | |
| May | 5 | | $ | 2,358.00 | | $ | 146.20 | | $ | 34.19 | | $ | 234.00 | |
| | 12 | | | 2,402.00 | | | 148.92 | | | 34.83 | | | 238.00 | |
| | 19 | | | 2,402.00 | | | 148.92 | | | 34.83 | | | 238.00 | |
| | 26 | | | 2,446.00 | | | 151.65 | | | 35.47 | | | 242.00 | |
| | | | $ | 9,608.00 | | $ | 595.69 | | $ | 139.32 | | $ | 952.00 | |
| June | 2 | | $ | 2,490.00 | | $ | 154.38 | | $ | 36.11 | | $ | 245.00 | |
| | 9 | | | 2,402.00 | | | 148.92 | | | 34.83 | | | 238.00 | |
| | 16 | | | 2,446.00 | | | 151.65 | | | 35.47 | | | 242.00 | |
| | 23 | | | 2,402.00 | | | 148.92 | | | 34.83 | | | 238.00 | |
| | 30 | | | 2,358.00 | | | 146.20 | | | 34.19 | | | 234.00 | |
| | | | $ | 12,098.00 | | $ | 750.07 | | $ | 175.43 | | $ | 1,197.00 | |
| Total | | | $ | 31,446.00 | | $ | 1,949.63 | | $ | 455.99 | | $ | 3,112.00 | |
| |
| |
| Social security | 6.2 | percent |
| Medicare | 1.45 | |
| FUTA | 0.6 | |
| SUTA | 5.4 | |
| |
Required:
On July 15, the firm issued a check to deposit the federal income tax withheld and the FICA tax (both employee and employer shares for the third month [June]).
Complete Form 941 in accordance with the discussions in this chapter. Use a 12.4 percent social security rate and a 2.9 percent Medicare rate in computations. Use the following address for the company: 2300 East Ocean Blvd., Long Beach, CA 90802. Use 75-4444444 as the employer identification number. Date the return July 31, 20X1. Mr. Fronkes phone number is 562-709-3654.
Analyze:
What is the balance of the Employee Income Tax Payable account at July 15?
Journal entry worksheet Record the entry to deposit payroll taxes for July 15. Note: Enter debits before credits. Form 941 for 201: Employer's QUAR TERLY Federal Tax Return 950113 Read the separate instructions before you complete this Form 941 . Please type or print within the boxes. Part 1: Answer these questions for this quarter. 1 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) 2 Wages, tips, and other compensation 3 Federal income tax withheld from wages, tips, and other compensation 4 If no wages, tips, and other compensation are subject to social security or Medicare tax Check and go to line 6 . 5a Taxable social security wages 5b Taxable social security tips 5c Taxable Medicare wages \& tips 5d Taxable wages \& tips subject to Additional Medicare Tax withholding 5e Add Column 2 from lines 5a,5b,5c, and 5d 5f Section 3121(q) Notice and Demand - Tax due on unreported tips 6 Total taxes before adjustments. Add lines 3,5e, and 5f 7 Current quarter's adjustment for fractions of cents 8 Current quarter's adjustment for sick pay 8 Current quarter's adjustment for sick pay 9 Current quarter's adjustments for tips and group-term life insurance 10 Total taxes after adjustments. Combine lines 6 through 9 11 Qualified small business payroll tax credit for increasing research activities. Attach Form 8974 12 Total taxes after adjustments and credits. Subtract line 11 from line 10 13 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, 944-X (PR), or 944-X (SP) filed in the current quarter 14 Balance due. If line 12 is more than line 13 , enter the difference and see instructions 15 Overpayment. If line 13 is more than line 12 , enter the difference 0.00 Check one: Apply next return Send a refund. You MUST complete both pages of Form 941 and SIGN it. For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. Cat. No. 17001Z Next ev. 1-20x1) Form 941 (Rev. 1-20X1) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT U SE THIS FORM FOR TAX FILING S OR FOR ANY PURPO SE OTHER THAN EDUCATIONAL. (c) 2019 McGraw-Hill Education. Page 2 of Form 941 . (Round your answers to 2 decimal places.) What is the balance of the Employee Income Tax Payable account at July 15 ? Journal entry worksheet Record the entry to deposit payroll taxes for July 15. Note: Enter debits before credits. Form 941 for 201: Employer's QUAR TERLY Federal Tax Return 950113 Read the separate instructions before you complete this Form 941 . Please type or print within the boxes. Part 1: Answer these questions for this quarter. 1 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) 2 Wages, tips, and other compensation 3 Federal income tax withheld from wages, tips, and other compensation 4 If no wages, tips, and other compensation are subject to social security or Medicare tax Check and go to line 6 . 5a Taxable social security wages 5b Taxable social security tips 5c Taxable Medicare wages \& tips 5d Taxable wages \& tips subject to Additional Medicare Tax withholding 5e Add Column 2 from lines 5a,5b,5c, and 5d 5f Section 3121(q) Notice and Demand - Tax due on unreported tips 6 Total taxes before adjustments. Add lines 3,5e, and 5f 7 Current quarter's adjustment for fractions of cents 8 Current quarter's adjustment for sick pay 8 Current quarter's adjustment for sick pay 9 Current quarter's adjustments for tips and group-term life insurance 10 Total taxes after adjustments. Combine lines 6 through 9 11 Qualified small business payroll tax credit for increasing research activities. Attach Form 8974 12 Total taxes after adjustments and credits. Subtract line 11 from line 10 13 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, 944-X (PR), or 944-X (SP) filed in the current quarter 14 Balance due. If line 12 is more than line 13 , enter the difference and see instructions 15 Overpayment. If line 13 is more than line 12 , enter the difference 0.00 Check one: Apply next return Send a refund. You MUST complete both pages of Form 941 and SIGN it. For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. Cat. No. 17001Z Next ev. 1-20x1) Form 941 (Rev. 1-20X1) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT U SE THIS FORM FOR TAX FILING S OR FOR ANY PURPO SE OTHER THAN EDUCATIONAL. (c) 2019 McGraw-Hill Education. Page 2 of Form 941 . (Round your answers to 2 decimal places.) What is the balance of the Employee Income Tax Payable account at July 15
