Sultanaly Company Limited pays its office employees each week. A partial list follows of employees and their payroll data for August. Because August is the vacation period, vacation pay is also listed.

Assume that the income tax withheld is 10% of wages and that union dues withheld are 1% of wages. Vacations are taken the second and third weeks of August by Ducharme, Friedman, and Gupta. The employment insurance rate is 1.73% for employees and 1.4 times that for employers. The CPP rate is 4.95% for employee and employer.
Instructions
(a) Make the journal entries that are necessary for each of the four August payrolls. The entries for the payroll and for the company's payroll taxes are made separately.
(b) Make the entry to record the monthly payment of accrued payroll liabilities.
(c) Prepare the entry to accrue the 4% vacation entitlement that was earned by employees in August. (No entitlement is earned on vacation pay.)

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Vacation Pay to Be Received in August $ 900 Weekly Pay Employee Christine Ducharme Saul Friedman Andrea Gettner Vijay Gupta Matthew Hartman $ 450 110 250 1,250 480 220 2,500