Warner Co. pays state unemployment tax of 2.0% of each employee’s first $7,000 of annual...

Warner Co. pays state unemployment tax of 2.0% of each employee’s first $7,000 of annual gross pay.

It also pays federal unemployment tax of 0.8% of each employee’s first $7,000 of annual gross pay.

Warner Co.’s Employer Identification Number is 778125398, its state taxpayer identification number is

13-458232, and it is located at 605 Main Street, Dallas, Texas 75201. Warner Co. reports the following summary information in its payroll register for 2009.

Required

1. Compute the amounts of FUTA and SUTA taxes Warner Co. owes for each quarter in 2009.

2. Prepare the general journal entry to record Warner Co.’s FUTA and SUTA taxes for the second quarter (ending on June 30) of 2009. This journal entry is made on June 30, 2009.

3. Prepare the general journal entry to record Warner Co.’s deposit of its second quarter FUTA and SUTA taxes. This journal entry is made on June 30, 2009.

4. Prepare a Form 940-EZ for Warner Co. for the year 2009.