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SP 11 Review the February 26 and March 25 transactions for Business Solutions

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SP 11 Review the February 26 and March 25 transactions for Business Solutions (SP 5) from Chapter 5.

Feb 26 The company paid cash to Lyn Addie for eight days’ work at $125 per day.
March 25 The company sold merchandise with a $2,002 cost for $2,800 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 $159. Compute her net pay for the eight days’ work paid on February 26. (Round amounts to the nearest cent.)

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

3. Recordthejournalentrytoreflectthe(employer)payrolltaxexpensesfortheFebruary26payrollpay- ment. 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 amounts to the nearest cent.)

4. Record the entry(ies) for the merchandise sold on March 25 if a 4% sales tax rate applies.

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