Acc225 Fundamental Accounting Principles: Serial Problem 11 (SP11) Adriana Lopez, Success Systems

Acc225 Fundamental Accounting Principles Serial Problem 11 (SP11) (This serial problem began in Chapter 1 and continues throughout most of the book. If previous chapter segments were not complete, the serial problem can begin at this point. It is helpful, but not necessary, for you to use the Working Papers that accompany this book.) Review the February 26 and March 25 transactions for Success Systems (SP5) from Chapter 5. Required: 1. Assume that Michelle Jones is an unmarried employee. Her $1,200 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 $189. Compute her net pay for the eight days’ work paid on February 26. 2. Record the journal entry to reflect the payroll payment to Michelle Jones as computed in part 1. 3. Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Michelle Jones has not met earnings limits for FUTA and SUTA – the FUTA rate is 0.8% and the SUTA rates is 4% for Success Systems. 4. Record the entry(ies) for the merchandise sold on March 25 if a 4% sales tax rate applies.
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