Following are some transactions and events of Business Solutions. Required: 1. Assume that Lyn Addie is an unmarried emp
Posted: Thu May 19, 2022 3:41 pm
Following are some transactions and events of Business
Solutions.
Required:
1. Assume that Lyn Addie is an unmarried
employee. Her $1,040 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 $104. 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.
Solutions.
Required:
1. Assume that Lyn Addie is an unmarried
employee. Her $1,040 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 $104. 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.