Refer to M10-3. Prepare the journal entry or entries that Lightning would use to record the payroll.

Question:

Refer to M10-3. Prepare the journal entry or entries that Lightning would use to record the payroll. Include both employee and employer taxes.
Refer M10-3
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 $ 50,000 but that employee income taxes totaling $ 7,000 and FICA taxes totaling $ 2,625 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. What was the amount of net pay? Assuming Lightning Electronics must also pay $ 250 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-0078025914

5th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

Question Posted: