1. On October 15, the firm issued a check to deposit the federal income tax withheld and t...

1. On October 15, the firm issued a check to deposit the federal income tax withheld and the FICA tax (both employees’ withholding and employer’s matching portion). Based on your computations in Problem 11.2B, record the issuance of the check in general journal form. Use journal page 31.

2. Complete Form 941 in accordance with the discussions in this chapter and the instructions on the form. Use a 12.4 percent social security rate and a 2.9 percent Medicare rate in computations. Use the following address for the company: 12001 Pioneer Blvd., Artesia, CA 90650. The firm’s phone number is 562-860-5451. Use 75-5555555 as the employer identification number. Date the return October 31, 2013. (Hint: Enter $0.07 on line 7a.)

Analyze: What total taxes were deposited with the IRS for the quarter ended September 30, 2013?

Problem 11.2B

A payroll summary for Styles for Less, owned by Nikki Parikh, for the quarter ending September 30, 2013, appears below. The business prepared the tax deposit forms and issued checks as follows during the quarter:

a. Federal Tax Deposit Coupon, Form 8109, check for July taxes, paid on August 15.

b. Federal Tax Deposit Coupon, Form 8109, check for August taxes, paid on September 15.

INSTRUCTIONS

1. Prepare the general journal entry on July 7, 2013, to record the employer’s payroll tax expense on the payroll ending that date. Use journal page 31. All earnings are subject to the following taxes:

Social security	6.2 percent
Medicare	1.45
FUTA	0.8
SUTA	2.2

2. Make the entries in general journal form to record deposit of the employee income tax withheld and the social security and Medicare taxes (both employees’ withholding and employer’s matching portion) on August 15 for July taxes and on September 15 for the August taxes.

Analyze: How much would a SUTA rate of 1.5 percent reduce the tax for the payroll of July 7?