The following data comes from the payroll department of LoJack Corporation for the last pay period of 2011.Employees will not be paid until 2012.
Required:
1.Determine the amount the balance sheet will report as Wages payable.
2.Determine the amount the income statement will report as Wages expense from this pay period.
3.What type of liability is Wages payable?
4.To what party must the company pay the FICA taxes?
5.Why does LoJack have to withhold taxes from its employees?

Question

The following data comes from the payroll department of LoJack Corporation for the last pay period of 2011.Employees will not be paid until 2012.
  Required:
1.Determine the amount the balance sheet will report as Wages payable.
2.Determine the amount the income statement will report as Wages expense from this pay period.
3.What type of liability is Wages payable?
4.To what party must the company pay the FICA taxes?
5.Why does LoJack have to withhold taxes from its employees?

Quizplus · Accepted Answer

The Answer of The following data comes from the payroll department of LoJack Corporation for the last pay period of 2011.Employees will not be paid until 2012.
  Required:
1.Determine the amount the balance sheet will report as Wages payable.
2.Determine the amount the income statement will report as Wages expense from this pay period.
3.What type of liability is Wages payable?
4.To what party must the company pay the FICA taxes?
5.Why does LoJack have to withhold taxes from its employees?

The Following Data Comes from the Payroll Department of LoJack