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 $100,000 but that employee income taxes totaling $14,000 and FICA taxes totaling $5,250 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts. Assume Lighting Electronics must pay $500 of unemployment taxes for this pay period. Required: Prepare the journal entry or entries that Lightning would use to record the payroll. Include both employee and employer taxes. (Omit the "$" sign in your response.) General journal Debit Credit Salaries and wages expense Withheld income taxes payable FICA payable Cash Payroll tax expense FICA payable Unemployment taxes payable ________________________________________ If the market price of a bond increased after it was issued and the company decided to retire its debt early, It will report a loss on debt retirement. Yes No The company will report a loss on debt retirement because, to retire the bonds, the company must pay more than their carrying value. On the balance sheet, cash and bonds payable will decrease. On the income statement a loss would be reported in a line item appearing between “Income from Operations” and “Income before Income Tax Expense.”

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 $100,000 but that employee income taxes totaling $14,000 and FICA taxes totaling $5,250 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts. Assume Lighting Electronics must pay $500 of unemployment taxes for this pay period.

Required:

Prepare the journal entry or entries that Lightning would use to record the payroll. Include both employee and employer taxes. (Omit the "$" sign in your response.)

  

General journal	Debit	Credit
Salaries and wages expense
Withheld income taxes payable
FICA payable
Cash
Payroll tax expense
FICA payable
Unemployment taxes payable

If the market price of a bond increased after it was issued and the company decided to retire its debt early, It will report a loss on debt retirement.

 

	Yes
	No

The company will report a loss on debt retirement because, to retire the bonds, the company must pay more than their carrying value. On the balance sheet, cash and bonds payable will decrease.  On the income statement a loss would be reported in a line item appearing between “Income from Operations” and “Income before Income Tax Expense.”