Lightning Electronics is a midsize manufacturer of lithium batteries. The compan

Question

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 $55,000 but that employee income taxes totaling $8,000 and FICA taxes totaling $2,875 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Assume Lightning Electronics must also pay $300 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.)

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.)

Explanation / Answer

Date Account Title and Explanation Debit Credit A) Salaries and Wages Expense $55,000 FICA Withheld (Employee) Payable $2,875 Income tax Withheld Payable $8,000 Cash $44,125 (To record the payroll expense) B) Payroll Tax Expense $3,175 FICA Withheld (Employer) Payable $2,875 Unemployment Tax Payable $300 (To record the payroll tax expense)

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