Following are the some transactions and events of Success Systems Feb 25 -The co
ID: 2494248 • Letter: F
Question
Following are the some transactions and events of Success Systems
Feb 25 -The company paid cash to Lyn Addie for eight days' work at $125 per day.
Mar. 25 - The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, invoice dated March 25.
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 your answer to 2 decimal places.)
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.)
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 4% for Success Systems. (Round your answers to 2 decimal places.)
4) Record the entries for the merchandise sold on March 25 if a 4% sales tax rate applies
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 your answer to 2 decimal places.)
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.)
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 4% for Success Systems. (Round your answers to 2 decimal places.)
4) Record the entries for the merchandise sold on March 25 if a 4% sales tax rate applies
Explanation / Answer
4)
3/25 Wildcat services 2800
merchandise 2002
sales tax (2800-2002)*4% 31.92
profit on sales 766.08