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M10-4 (Algo) Reporting Payroll Tax Liabilities (LO 10-2) Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for the November 1-14

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M10-4 (Algo) Reporting Payroll Tax Liabilities (LO 10-2) Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for the November 1-14 pay period show that employees earned wages totaling $74,000 but that employee income taxes totaling $11,800 and FICA taxes totaling $3,825 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts. Assume Lightning Electronics also must pay $490 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 (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) NO Transaction 1 Credit Debit 74,000 O General Journal Salaries and Wages Expense Income Tax Payable FICA Payable Salaries and Wages Payable 11,800 3,825 B 2 X Payroll Tax Expense FICA Payable Unemployment Tax Payable OOO 3,825 490 E10-3 (Algo) Recording Payroll Costs [LO 10-2) McLoyd Company completed the salaries and wages payroll for March. The payroll provided the following details Salaries and wages earned Employee income taxes withheld FICA taxes withheld Unemployment taxes $ 570,000 52,725 40, 755 3,965 Required: 1. Considering both employee and employer payroll toxes, use the preceding information to calculate the total lobor cost for the company for March 2. & 3. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer's FICA taxes and unemployment taxes. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Date Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer's FICA taxes and unemployment taxes. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) No General Journal Debit Credit 1 March 31 Salaries and Wages Exponse 570,000 Unemployment Tax Payable 3 52.725 FICA Payable 40,756 Cash 476,520 2 March 31 44,720 Payroll Tax Expenso Unemployment Tax Payable FICA Payable OO 3,965 40,755 Reg1

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