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Serial problem began in Chapter $1.$ If previous chapter segments were not completed, the serial problem can begin at this point. It is available in Connect with an algorithmic option.

SP $9$ 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.

Mar. $25$ The company sold merchandise with a $$2,002$ cost for $$2,800$ on credit to Wildcat Services, invoice dated March $25.$

Required

Assume that Lyn Addie is an unmarried employee. Her $$1,000$ of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $$159.$ Compute her net pay for the eight days' work paid on February $26.$ Round amounts to the nearest cent.

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

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 $0\mathrm{.}6\%$ and the SUTA rate is $5\mathrm{.}4\%$ for the company$).$ Round amounts to the nearest cent.

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

SERIAL PROBLEM

Business Solutions

C$2$ P$2$ P$3$

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