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Following are some transactions and events of Business Solutions. Feb. 26 The company paid cash to Lyn Addie for eight days' work at $125 per

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Following are some transactions and events of Business Solutions. Feb. 26 The company paid cash to Lyn Addie for eight days' work at $125 per day. Mar. 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to wildcat Services, invoice dated March 25. Required: 1. Assume that Lyn Addle is an unmarried employee. Her $1,000 of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $159. Compute her net pay for the eight days' work pald on February 26. 2. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1 3. Record the journal entry to reflect the employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA (the FUTA rate is 06% and the SUTA rate is 5.4% for the company) 4. Record the entries for the merchandise sold on March 25 if a 4% sales tax rate applies. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. (Round your answers to 2 decimal places. Do not round intermediate calculations.) No Debit Credit Date Feb 26 1 1,000.00 159.00 General Journal Wages expense Income taxes payable FICASocial security taxes payable FICA-Medicare taxes payable Cash 62.00 14.50 764.50 Debit No Record the journal entry to reflect the employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA (the FUTA rate is 0.6% and the SUTA rate is 5.4% for the company) (Round your answers to 2 decimal places. Do not round intermediate calculations.) Date General Journal Credit Feb 26 Payroll taxes expense 267.00 FICA-Social security taxes payable 159.00 FICA-Medicare taxes payable 62.00 Federal unemployment taxes payable 6.00 State unemployment taxes payable 40.00 1 Record the entries for the merchandise sold on March 25 if a 4% sales tax rate applies. Debit Credit No Date 2,800 X 1 Mar 25 General Journal Accounts receivable_Wildcat services Sales taxes payable 112 2,688 Sales 2,002 2 Mar 25 Cost of goods sold Merchandise inventory 2,002

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