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 $71,000 but that employee income taxes totaling $11,200 and FICA taxes totaling $3,675 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Assume Lightning Electronics also must pay $460 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.)      Next

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Asked Apr 20, 2019
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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 $71,000 but that employee income taxes totaling $11,200 and FICA taxes totaling $3,675 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Assume Lightning Electronics also must pay $460 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.)

 

 

 

 

 
 
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Expert Answer

Step 1

An organization's payroll costs not just incorporate the wages paid to the representatives. In the US, bosses or organizations need to likewise make good on the FICA government expenses which is standardized savings duty and restorative commitments for each secured worker. There are likewise state and government joblessness premiums that organizations need to cover for their representatives, as relevant. The representative advantages differ from one organization to the next and are likewise part of the payroll costs.

Step 2

Journal entry on w...

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