SP $11$ Serial Problem Business Solutions $($Static$)$ LO P$2,$ P$3,$ C$2$

Following are some transactions and events of Business Solutions.

February $26$ The company paid cash to Lyn Addie for eight days$$ work at $$125$ per day.

March $25$ The company sold merchandise with a $$2,002$ cost for $$2,800$ on credit to Wildcat Services, invoice dated March $25.$

Required:

Assume that Lyn Addie 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 paid on February $26.$

Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part $1.$

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 $0\mathrm{.}6\%$ and the SUTA rate is $5\mathrm{.}4\%$ for the company$).$

Record the entries for the merchandise sold on March $25$ if a $4\%$ sales tax rate applies.