On March 31, 2019, the Federal Unemployment Tax Payable account in the general ledger of The Argosy Company showed a balance of $1,507. This represents the FUTA tax owed for the first quarter of the year. On April 30, 2019, the firm issued a check to deposit the amount owed in the First Security National Bank. Record this transaction in general journal form.

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Business

Stewart

3 August, 10:12

On March 31, 2019, the Federal Unemployment Tax Payable account in the general ledger of The Argosy Company showed a balance of $1,507. This represents the FUTA tax owed for the first quarter of the year. On April 30, 2019, the firm issued a check to deposit the amount owed in the First Security National Bank. Record this transaction in general journal form.

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Gianni Parrish · Answer 1

Answer:Argosy Journal $

Date

March 31,2019

FUTA tax expenses Dr 1507

FUTA tax payable Cr 1507

Narration. Records of amount of futa tax payable.

April 30,2019

Investment - First security national bank Dr 1507

Bank account Cr 1507

Narration. Investment deposit to first security national bank

Explanation:

The liability to pay the Futa tax is represented in the Argosy account as an expenses to the income statement and a liability awaiting payment by Argosy.

The deposit of the amount of the tax to security bank account does not represents a payment of the liability but a transaction between the Argosy and the bank.