PLEASE ANSWER QUESTIONS FROM CHAPTER 9. COMPLETE QUESTION IS IN FILE ATTACHED. Feb. 26 The company paid cash to Lyn Addie for eight days work at $125 per day. Mar. 25 The company sold merchandi

PLEASE ANSWER QUESTIONS FROM CHAPTER 9. COMPLETE QUESTION IS IN FILE ATTACHED.

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.

Assume that Lyn Addie is an unmarried employee. Her $1,000 of wages are subject to no deductions other than FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $100. FICA tax rates applicable are: 6.2% for Social security and 1.45% Medicare. Compute her net pay for the eight days’ work paid on February 26. (Round your intermediate calculations and final answer to 2 decimal places. Omit the “$” sign in your response.)

Net pay $

2.

Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Date General Journal Debit Credit

Feb. 26

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 0.8% and the SUTA rate is 4% for Business Solutions. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Date General Journal Debit Credit

Feb. 26

4.

Record the entry(ies) for the merchandise sold on March 25 if a 4% sales tax rate applies. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Date General Journal Debit Credit

Mar. 25

ATTACHMENT PREVIEW

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Following are the some transactions and events of Business Solutions.
Feb. 26
The company paid cash to Lyn Addie for eight days’ work at $125 per day.
Mar. 25
Required:
1
2
Date
General Journal
Debit
Credit
3
Date
General Journal
Debit
Credit
4
Date
General Journal
Debit
Credit
The company sold merchandise with a $2,062 cost for $2,860 on credit to
Wildcat Services, invoice dated March 25.
Assume that Lyn Addie is an unmarried employee. Her $1,000 of wages are
subject to no deductions other than FICA Social Security taxes, FICA
Medicare taxes, and federal income taxes. Her federal income taxes for this
pay period total $100. FICA tax rates applicable are: 6.2% for Social security
and 1.45% Medicare. Compute her net pay for the eight days’ work paid on
February 26.
(Round your intermediate calculations and final answer to 2
decimal places. Omit the “$” sign in your response.)
Net pay
$
Record the journal entry to reflect the payroll payment to Lyn Addie as
computed in part 1.
(Round your answers to 2 decimal places. Omit the
“$” sign in your response.)
Feb. 26
Record the journal entry to reflect the (employer) payroll tax expenses for the
February 26 payroll payment. Assume Lyn Addie has not met earnings limits
for FUTA and SUTA—the FUTA rate is 0.8% and the SUTA rate is 4% for
Business Solutions.
(Round your answers to 2 decimal places. Omit the
“$” sign in your response.)
Feb. 26
Record the entry(ies) for the merchandise sold on March 25 if a 4% sales tax
rate applies.
(Round your answers to 2 decimal places. Omit the “$” sign
in your response.)
Mar. 25
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