SP 9 Serial Problem Business Solutions (Algo) LO P2, P3, C2 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 $2,100 cost for $3,100 on credit to Wildcat Services, invoice dated Required: March 25. 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. 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 0.6% 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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. (Round your answer to 2 decimal places. Do not round intermediate calculations.) Net pay es Journal entry worksheet 1 Record the payroll expenses and liabilities for the eight days' work paid on February 26. Note: Enter debits before credits. Date General Journal February 26 Wages expense FICA-Medicare taxes payable Employee federal income taxes payable FICA Social security taxes payable Cash Debit Credit 960.00 139.20 96.00 59.52 665.28 Record entry Clear entry View general journal Journal entry worksheet < 1 Record the employer's payroll expenses and liabilities for the eight days' work paid on February 26. Note: Enter debits before credits. Date General Journal February 26 Payroll taxes expense Federal unemployment taxes payable Employee medical insurance payable State unemployment taxes payable Debit Credit Record entry Clear entry View general journal es Journal entry worksheet < 1 2 Record the sales revenue of $3,100 on account to Wildcat Services together with 4% sales tax on every dollar of merchandise sold. Note: Enter debits before credits. Date March 25 General Journal Debit Credit Record entry Clear entry View general journal