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Following are some transactions and events of Business Solutions. February 26 The company paid cash to Lyn Addie for eight doys' work at $14a per
Following are some transactions and events of Business Solutions. February 26 The company paid cash to Lyn Addie for eight doys' work at $14a per day. March 25 The company sold merchandise with a $2,200 cost for $3,4ee on credit to Witdcat Services, invoice dated March 25. Required: 1. Assume that Lyn Addle is an unmarried employee. Her $1120 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 $112. Compute her net pay for the eight days work paid 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 payroil 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). 4. Record the entries for the merchandise sold on Morch 25 if a 4% sales tax rate opplies. Complete this question by entering your answers in the tabs below. Record the journal entry to refiect the (employer) payroll tax expenses for the Febr met earnings limits for FUTA and SUTA (the FUTA rate is 0.6% and the SUTA rate it decimal ploces. Do not round intermediate calculations.) Journal entry worksheet
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