Royal Plumbing Company reports the following summary payroll data for the year ended October 31, 2020: Gross
Question:
Royal Plumbing Company reports the following summary payroll data for the year ended October 31, 2020:
Gross Pay:
Administrative salaries $ 260,000
Plumber’s wages 530,000
Total Gross Pay $ 790,000
Deductions:
CPP contributions $ 22,644
Income taxes 154,296
EI contributions 18,372
United Way contributions 10,122
Long-term disability insurance 1,672
Company pension plan 22,500
Total Deductions $229,606
Royal Plumbing Company's payroll costs include: CPP, EI, and Workers' Compensation and Vacation Pay.
The cost for Workers’ Compensation is $14,000 for the current year. Vacation Pay is 4% of the gross pay for the current year.
In addition, the company matches the employees' contributions to the long-term disability insurance plan and the company pension plan.
Instructions:
(a) Prepare a summary journal entry record the full year's payroll on October 31, 2020 .
(b) Prepare the journal entry to record the employer’s benefits expense related to the full year’s payroll on October 31, 2020.
Financial Accounting
ISBN: 978-0470507018
7th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso