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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 employee's 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?
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