Question :
Feb. 26 The company paid cash to Lyn Addie for eight days' work at $125 per day.
Mar. 25
The company sold merchandise with a $2,062 cost for $2,860 on credit to Wildcat Services, invoice dated March 25.
Required:
1.
Consider that Lyn Addie is an unmarried employee. Her $1,000 of wages is subject to no deductions other than FICA Social Security taxes, Federal income taxes and FICA Medicare taxes. Her federal income taxes for this pay period total $100. FICA tax rates applicable are: 6.2% for Social security and 1.45% Medicare. Evaluate her net pay for the eight days' work paid on February 26.
Net pay $
2.
Record the journal entry to reflect the payroll payment to Lyn Addie as evaluated in part 1.
Date General Journal Debit Credit
Feb. 26
3.
Record the journal entry to reflect the payroll tax expenses for the February 26 payroll payment. Consider Lyn Addie has not met earnings limits for FUTA and SUTA-the FUTA rate is 0.8% and the SUTA rate is 4 percent for Business Solutions.
Date General Journal Debit Credit
Feb. 26
4.
Record the entries for the merchandise sold on March 25 if a 4% sales tax rate applies.
Date General Journal Debit Credit
Mar. 25