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.

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.