Kerr Consulting had hired a part-time office manager to be paid $2,000 salary per month. The following additional payroll information is available for the January 22 pay date:
Federal income tax to be withheld ................................................... $138.55
Provincial income tax to be withheld............................................... 99.70
The employee is eligible for CPP and EI deductions. Use the 2012 rates given in this chapter and account for the CPP basic exemption in any calculations.
Required
1. Compute the office manager's gross pay and net pay for the month.
2. Make a general journal entry to record Kerr Consulting's salary expense for the office manager, including her payroll deductions and the employer payroll costs. Round all amounts to the nearest cent.