M10-4 Reporting Payroll Tax Liabilities [LO 10-2 Lightning Electronics is a mids

Question

M10-4 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 $60,000 but that employee income taxes totaling $9,000 and FICA taxes totaling $3,125 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts. Assume Lightning Electronics must also pay $350 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. (f no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the wages expense for November 1-14 time period, including deductions payroll Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

1 Wages expense 60000        Income taxes payable 9000        FICA taxes payable 3125        Cash 47875 2 Payroll tax expense 3475        FICA taxes payable 3125        Unemployment taxes payable 350

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