5.) On February 1, the Acts Tax Service received a $3,600 cash retainer for tax preparation services to be provided rateably over the next 4 months. The full amount was credited to the liability account Unearned Service Revenue. Assuming that the revenue is recognized rateably over the 4 month period, what balance would be reported on the February 28 balance sheet for Unearned Service Revenue?
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5.) On February 1, the Acts Tax Service received a $3,600 cash retainer for tax preparation services to be provided rateably over the next 4 months. The full amount was credited to the liability account Unearned Service Revenue. Assuming that the revenue is recognized rateably over the 4 month period, what balance would be reported on the February 28
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- On September 30, Cody Companys selected account balances are as follows: In general journal form, prepare the entries to record the following: Oct. 15Payment of liabilities for FICA taxes and the federal income tax. 31Payment of liability for state unemployment tax. 31Payment of liability for federal unemployment tax.Decimal Corporation is a monthly depositor whose December federal taxes are displayed below. Record one journal entry to account for the payment of the federal taxes. All tax payments are made in a timely manner on the payment due date (which, for this month, is not impacted by a weekend or holiday). Chart of Accounts Notes: • Enter the transaction date on the first line only (if multiple transactions are required, enter the date on the first line of each transaction). Enter all debits within the transaction prior to entering any credits. • See the Chart of Accounts provided for the proper account names to use. • To earn any credit for a given line within the journal entry, the account name must be correct. Partial credit is given for a correct account name with an incorrect amount; full credit is given for a correct account name with the correct amount. • Do not include journal entry explanation when submitting your answer. December Tax Totals Federal Income Tax $3250 Employee's…Jumping Jumpers Smocking, Inc., is a monthly depositor whose December federal taxes are displayed below. Record one journal entry to account for the payment of the federal taxes. All tax payments are made in a timely manner on the payment due date (which, for this month, is not impacted by a weekend or holiday). Chart of Accounts Notes: • Enter the transaction date on the first line only (if multiple transactions are required, enter the date on the first line of each transaction). Enter all debits within the transaction prior to entering any credits. • See the Chart of Accounts provided for the proper account names to use. • To earn any credit for a given line within the journal entry, the account name must be correct. Partial credit given for a correct account name with an incorrect amount; full credit is given for a correct account name with the correct amount. • Do not include journal entry explanation when submitting your answer. December Tax Totals Federal Income Tax Employer's…
- Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax. (a) Determine the proper amount of revenue and sales taxes to report for the month. (b) Prepare the general journal entry to record the revenue and related liabilities for the month.24) Jacobs Company owes $700 of federal corporate income taxes. The amount will be paid next month. The journal entry to record the amount of federal income tax owed would be: A) Income Tax Expense Cash 700 B) Income Tax Expense Income Tax Payable C) Income Tax Payable Income Tax expense D) Income Tax Payable Cash 700 700 700 700 700 700 7006. The Primo Company had a total payroll of $148,600.34 for the first quarter of the current year. It withheld $28,531.27 from the employees for federal income tax during this quarter. The company made the following deposits in a qualified bank depository for the amount of the income and Social Security and Medicare taxes withheld from the employees and for the company's contribution to the FICA tax: $17,050 on February 6; $17,050 on March 4; and $17,050 on April 5. Primo Company's bookkeeper is now filling out Form 941 (quarterly return), which is due by the end of April. Complete the following to determine the amount of the check that the company must send to the IRS for the undeposited taxes due. a. Total Social Security and Medicare taxes to be paid for quarter b. Total taxes c. Total deposits for quarter (sent to qualified bank depository) d. Undeposited taxes due IRS
- For the third quarter of the year, Johnson Company, 415 Circle Avenue, Chicago, Illinois 60652, received Form 941 from the Internal Revenue Service. The identification number of Johnson Company is 91-4213171. Its payroll for the quarter ended September 30 is as follows: TAXABLE EARNINGS DEDUCTIONS NAME TOTAL EARNINGS SOCIAL SECURITY MEDICARE FEDERAL INCOME TAX SOCIAL SECURITY TAX MEDICARE TAX Brown, D. D. 16,629.00 16,629.00 16,629.00 2,494.00 1,031.00 241.12 Carey, L. R. 18,528.00 18,528.00 18,528.00 2,780.00 1,148.74 268.66 Domzalski, T. P. 14,665.00 14,665.00 14,665.00 2,100.00 909.23 212.64 Grisson, R. O. 13,721.00 13,721.00 13,721.00 2,058.00 850.70 198.95 Tyler, J. L. 17,406.00 17,406.00 17,406.00 2,510.00 1,079.17 252.39 Valdez, K. R. 15,287.00 15,287.00 15,287.00 2,295.00 947.79 221.66 96,236.00 96,236.00 96,236.00 14,237.00 5,966.63 1,395.42 The company has had six employees throughout the year. Assume that the FICA Social Security (employer)…8. In a proceeding under Chapter 7, which of the following claims incurred within 30 days of the petition will be paid last? A) Back taxes owed to the state government. B) Utility bills arising in the ordinary course of the debtor's business incurred during the twoweek period following the filing of the petition. C) Up to ($ 2,000) per employee in wages. D) Up to ($ 2,000) per employee in employer contributions to an employee pension fund.Vulcan Company is a monthly depositor whose tax liability for March 20-- is $3,200. 1. What is the due date for the deposit of these taxes?April 15 2. Assume that no deposit was made until April 29 (14 days late). Compute the following penalties. Assume a 365-day year in your computations. Round your answers to the nearest cent. a. Penalty for failure to make timely deposit. $ b. Penalty for failure to fully pay tax. $ c. Interest on taxes due and unpaid (assume a 6% interest rate). $ d. Total penalty imposed.
- Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. NAME BEGINNINGCUMULATIVEEARNINGS TOTAL EARNINGS DEDUCTIONS FEDERALINCOME TAX STATEINCOME TAX Denato, T. 6,820.00 480.00 24.00 4.80 Herrera, M. 6,840.00 470.00 23.00 4.60 Joyner, J. 36,320.00 740.00 58.00 11.60 King, L. 26,200.00 540.00 30.00 6.00 Wilson, M. 116,060.00 2,720.00 456.78 91.36 Yee, N. 28,426.00 605.00 37.00 7.40 Assumed tax rates are as follows: FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee.a. Prepare a general journal entry to record the payroll as of December 7. The…Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. NAME BEGINNINGCUMULATIVEEARNINGS TOTAL EARNINGS DEDUCTIONS FEDERALINCOME TAX STATEINCOME TAX Denato, T. 6,820.00 480.00 24.00 4.80 Herrera, M. 6,840.00 470.00 23.00 4.60 Joyner, J. 36,320.00 740.00 58.00 11.60 King, L. 26,200.00 540.00 30.00 6.00 Wilson, M. 116,060.00 2,720.00 456.78 91.36 Yee, N. 28,426.00 605.00 37.00 7.40 Assumed tax rates are as follows: FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. Required: 1. Complete the payroll register. Payroll checks begin with Ck.…Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. NAME BEGINNINGCUMULATIVEEARNINGS TOTAL EARNINGS DEDUCTIONS FEDERALINCOME TAX STATEINCOME TAX Denato, T. 6,820.00 480.00 24.00 4.80 Herrera, M. 6,840.00 470.00 23.00 4.60 Joyner, J. 36,320.00 740.00 58.00 11.60 King, L. 26,200.00 540.00 30.00 6.00 Wilson, M. 116,060.00 2,720.00 456.78 91.36 Yee, N. 28,426.00 605.00 37.00 7.40 Assumed tax rates are as follows: FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. Required: 1. Complete the payroll register. Payroll checks begin with Ck.…
