Hidden Dragon Restaurants gross payroll for April is $46,600. The company deducted $2,540 for CPP, $736 for

Question:

Hidden Dragon Restaurant’s gross payroll for April is $46,600. The company deducted $2,540 for CPP, $736 for EI, and $9,011 for income taxes from the employees’ cheques. Employees are paid monthly at the end of each month.

Instructions

a. Prepare a journal entry for Hidden Dragon on April 30 to record the payment of the April payroll to employees.

b. Prepare a journal entry on April 30 to accrue Hidden Dragon’s employer payroll costs. Assume that Hidden Dragon is assessed workers’ compensation premiums at a rate of 1% per month and accrues for vacation pay at a rate of 4% per month.

c. On May 15, Hidden Dragon pays the Receiver General the correct amounts for April’s payroll. Prepare a journal entry to record this remittance

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Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Question Posted: Jan 20, 2023 02:54 AM

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Hidden Dragon Restaurants gross payroll for April is $46,600. The company deducted $2,540 for CPP, $736 for

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a b c Apr 30 Salaries Exp...View the full answer

Accounting Principles Volume 2

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