Refer to Korn Business Solutions

question 62

Essay

Refer to Korn Business Solutions. Write the journal entries that would be used to record each type of lease described in the previous question.

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Definitions:

Look-Back Period

A period of time used to determine whether a business should make its Form 941 tax deposits on a monthly or semiweekly basis. The IRS defines this period as July 1 through June 30 of the year prior to the year in which Form 941 tax deposits will be made.

Form 941

A tax form used by employers to report federal withholdings from employee wages, including Social Security and Medicare taxes.

FUTA Tax Payable

A liability representing the federal unemployment tax that employers must pay on behalf of their employees to the IRS.

Payroll Tax Expense

The cost incurred by employers for taxes assessed on employee wages, including social security and medicare taxes.