Question

BE13-6 (L01) Lexington Corporation’s weekly payroll of \(24,000 included FICA taxes withheld of \)1,836, federal taxes with-held of \(2,990, state taxes withheld of \)920, and insurance premiums withheld of $250. Prepare the journal entry to record Lexington’s payroll.

Short answer

The amount of cash paid for salaries and wages expenses is $18,004.

Step-by-step solution

Meaning of Payroll

The amount of money employees get periodically for the hard work they provide to their employer is known as payroll. Employees get the amount of payroll after withholding various statutory taxes.

Journal Entries

Date	Accounts and Explanation	Debit $	Credit $
	Salaries and Wages Expenses	$24,000
	FICA Taxes Withheld		$1,836
	Federal Taxes With-held		$2,990
	State taxes Withheld		$920
	Insurance Premium Withheld		$250
	Cash		$18,004