**Lightning Electronics Payroll Journal Entry Exercise**Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period indicate that employees earned wages totaling $71,000. However, employee income taxes amounting to $11,200 and FICA taxes totaling $3,675 were withheld. The net wages were directly deposited into the employees' bank accounts. Additionally, the company must pay $460 in unemployment taxes for this pay period.**Objective:**Prepare the journal entry or entries Lightning would use to record the payroll, including both employee and employer taxes. If no entry is needed for a transaction/event, select "No Journal Entry Required" in the first account field.**Instructions:**1. View the transaction list.2. Use the Journal Entry Worksheet to record the wages expense for the November 1-14 time period, including payroll deductions.3. Enter debits before credits as indicated.**Journal Entry Worksheet:**- Prompt: Record the wages expense for the November 1-14 time period, including payroll deductions.**Note:**Ensure debit entries precede credits.**Journal Entry Table:**- **Column Headers:** - Transaction - General Journal - Debit - Credit- **Rows:** - Provide spaces for multiple transaction entries.This exercise helps illustrate the importance of accurate payroll accounting in managing business finances. ### Payroll Accounting for Lightning ElectronicsLightning Electronics is a midsize manufacturer of lithium batteries. For the pay period from November 1 to 14, the payroll records indicate:- Total wages earned by employees: $71,000- Employee income taxes withheld: $11,200- FICA taxes withheld: $3,675The net pay was directly deposited into the employees’ bank accounts. Additionally, Lightning Electronics is required to pay $460 in unemployment taxes for this pay period.#### Instructions for Journal EntryPrepare the journal entry to record the payroll, including both employee and employer taxes. If no entry is needed for a specific transaction/event, select "No Journal Entry Required" in the first account field.#### Journal Entry WorksheetUse the following worksheet to record the payroll tax expense. Remember to enter debits before credits.| Transaction | General Journal | Debit | Credit ||-------------|---------------------|-------|--------|| 2 | | | || | | | || | | | || | | | || | | | |Click on "View transaction list" for more details on transactions.

Journal entry is the procedure for initially documenting commercial transactions in the books of…

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 $71,000 but that employee income taxes totaling $11,200 and FICA taxes totaling $3,675 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts. Assume Lightning Electronics also must pay $460 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.)

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 $71,000 but that employee income taxes totaling $11,200 and FICA taxes totaling $3,675 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts. Assume Lightning Electronics also must pay $460 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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