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 $72,000 but that employee income taxes totaling $11,400 and FICA taxes totaling $3,725 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Assume Lightning Electronics also must pay $470 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. a.) Record the wages expense for November 1-14 time period, including payroll deductions. b.) Record the payroll tax expense.
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 $72,000 but that employee income taxes totaling $11,400 and FICA taxes totaling $3,725 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Assume Lightning Electronics also must pay $470 of
Prepare the
a.) Record the wages expense for November 1-14 time period, including payroll deductions.
b.) Record the payroll tax expense.
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