reducto co. pays a weekly payroll of $97,000 that includes federal taxes withheld of 12,700 fica taxes withheld of 7260, and retirement withholdings of 6,000. what is the effect on assets and liabilities from this transaction

Assets decrease $71,040 and liabilities increase $25,960

Explanation:

A decrease in an asset (which is an offset by either an increment in another asset, a reduction in a particular equity account or liability, or a boost in an expense.)

Increasing assets (indications to prove the growth of the company, but everybody can acknowledge to the fact that there are a lot more behind the scenes which is more than just looking at the assets.)

Decrease in assets = $97,000 - $12,700 - $7,260 - $6,000 = $71,040

Increase in assets = $12,400 + $7,290 + $6,000 = $25,960