Concept explainers
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 foreieht days' work at SJ25 per day. Mar. 25 The company sold merchandise with a S2,002 cost for $2,800 on credit to Wildcat Services, invoice dated March 25.
Required
1. Assume that Lyn Addie is an unmarried employee. Her SI.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 S159. Compute her net pay for the eight days' work paid on February 26. Round amounts to the nearest cent.
2. Record the
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). 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.

Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
FUND.ACCT.PRIN.-CONNECT ACCESS
- Daisy Inc., wants to make a profit of $25,000. It has variable costs of $80 per unit and fixed costs of $15,000. How much must it charge per unit if 4,000 units are sold? Accounting 51arrow_forwardNeed help with this question solution general accountingarrow_forwardFantom Enterprises sells on terms of 3/12, net 40. Gross sales last year were $520,000, and accounts receivable averaged $70,000. Half of Fantom's customers paid on Day 12 and took discounts. a) What are Fantom's sales net of cash discounts taken? b) What is the total dollar finance charge paid by the non-discount-paying customers? Helparrow_forward
- Daisy Inc., wants to make a profit of $25,000. It has variable costs of $80 per unit and fixed costs of $15,000. How much must it charge per unit if 4,000 units are sold? ?!arrow_forwardPlease provide answer this financial accounting question without use Aiarrow_forwardCalculate the net operating income for this general accounting questionarrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,



