Brad Jackson works for a Bob's Burgers takeout for straight-time

Brad Jackson works for a Bob's Burgers takeout for straight-time earnings of $10.50 per hour with time and a half for hours in excess of 35 per week. Jackson's payroll deductions include income tax of 25 percent, CPP of 4.95 percent on earnings (account for the $3,500 basic annual exemption), and EI of 1.88 percent on earnings. In addition, he contributes $10 per week to his Registered Retirement Savings Plan (RRSP). Assume Jackson worked 40 hours during the week. He has not yet reached the CPP or EI maximum earning levels.

Required

1. Compute Jackson's gross pay and net pay for the week.

2. Make a June 14 general journal entry to record the restaurant's wage expense for

Jackson's work, including his payroll deductions and the employer payroll costs. Round all amounts to the nearest cent. An explanation is not required.

Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Cost Accounting Tutors
Ask questions directly from Qualified Online Cost Accounting Tutors .
Best for online homework assistance.