Preparing deposit coupons and Form 941 LO3 LO4 Refer to Problem 10-3B. MLS Company’s...

Preparing deposit coupons and Form 941 LO3 LO4

Refer to Problem 10-3B. MLS Company’s tax year ends on December 31 and its federal Employer

Identification Number is 548932154. It is located at 102 Grindstone Way, Columbus, Ohio 43085.

Required

1. Prepare a Form 8109 for MLS Company’s July 15 deposit of its June FICA and employee income

taxes.

2. Prepare MLS Company’s Form 941 for the second quarter.

(Refer 10-3B)

MLS Company has five employees, each of whom earns $1,600 per month and is paid on the last day of each month. All five have been employed continuously at this amount since January 1. MLS uses a payroll bank account and special payroll checks to pay its employees. On June 1, the following accounts and balances exist in its general ledger:

a. FICA—Social Security Taxes Payable, $992; FICA—Medicare Taxes Payable, $232. (The balances of these accounts represent total liabilities for both the employer’s and employees’ FICA taxes for the May payroll only.)

b. Employees’ Federal Income Taxes Payable, $1,050 (liability for May only).

c. Federal Unemployment Taxes Payable, $88 (liability for April and May together).

d. State Unemployment Taxes Payable, $440 (liability for April and May together).

During June and July, the company had the following payroll transactions.

Required

Prepare journal entries to record the transactions and events for both June and July.