70.2K

Verified Solution

Link Copied!

Following are some transactions and events of Business Solutions. February 26 The company paid cash to Lyn Addie for eight days' work at $140 per day. March 25 The company sold merchandise with a $2,700 cost for $3,100 on credit to wildcat services, invoice dated March 25 . Required: 1. Assume that Lyn Addie is an unmarried employee. Her $1,120 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 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. Assume that Lyn Addie is an unmarried employee. Her $1,120 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. Note: Round your answer to 2 decimal places. Do not round intermediate calculations. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. Note: Round your answers to 2 decimal places. Do not round intermediate calculations. Journal entry worksheet Record the payroll expenses and liabilities for the eight days' work paid on February 26 . Note: Enter debits before credits. Journal entry worksheet Record the employer's payroll expenses and liabilities for the eight days' work paid on February 26. Note: Enter debits before credits. Journal entry worksheet 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

Answer & Explanation Solved by verified expert

See Answer