SP $9$ Serial Problem Business Solutions $($Algo$)$ 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 $$120$ per day.

March $25$ The company sold merchandise with a $$2,300$ cost for $$3,200$ on credit to Wildcat Services, invoice dated

March $25.$

Required:

Part $1$ Assume that Lyn Addie is an unmarried employee. Her $$960$ 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 $$96.$ Compute her net pay for the

eight days' work paid on February $26.$

part $2.$Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part $1.$

part$3.$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 $0\mathrm{.}6\%$ and the SUTA rate is $5\mathrm{.}4\%$ for the company$).$

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

Journal entry for part $4$

$-$March $25$ Record the sales revenue of $$3,200$ on account to Wildcat Services together with $4\%$ sales tax on every dollar of merchandise sold.

$-$March $25$ Record the cost of goods sold of $$2,300..$