Brad Jackson works for a Bob's Burgers takeout for straight-time earnings of $10.50 per hour, with time
Question:
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 1.83 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 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.
Step by Step Answer:
Accounting Volume 1
ISBN: 978-0132690096
9th Canadian edition
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood