Question
Lightning Electronics is a midsize manufacturer of lithium batteries. The companys payroll records for the November 114 pay period show that employees earned wages totaling
Lightning Electronics is a midsize manufacturer of lithium batteries. The companys payroll records for the November 114 pay period show that employees earned wages totaling $69,000 but that employee income taxes totaling $10,800 and FICA taxes totaling $3,575 were withheld from this amount. The net pay was directly deposited into the employees bank accounts. Assume Lightning Electronics must also pay $440 of unemployment taxes for this pay period. Prepare the journal entry or entries that Lightning would use to record the payroll. Include both employee and employer taxes 1.Record the wages expense for November 1-14 time period, including payroll deductions. 2.Record the payroll tax expense.
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