Use the information provided in Exercise AI-2 to complete the following requirements:

1. Prepare a general journal entry to record the employer’s payroll costs resulting from the payroll.

2. Prepare a general journal entry to record the following employee benefits incurred by the company: 

(a) Health insurance costs equal to the amounts contributed by each employee and (b) contributions equal to 10% of gross pay for each employee’s retirement income program.

Refer to exercise AI-2

The following information as to earnings and deductions for the weekly pay period ended March 9 was taken from a company’s payroll records:

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Distribution Sales Salaries Deductions Pay El Income Total Gross Pay Office Premium Deductions Net Pay Employee Berkley, M. Chandler, O. Meister, P. Taxes CPP Salaries 550.16 10.81 575.00 575.00 0.00 14.03 24.84 840.00 15.79 0.00 27.14 42.93 797.07 840.00 36.05 19.18 55.23 1,020.00 0.00 964.77 1,020.00 77.22 45.78 575.00 Totals 2,435.00 0.00 123.00 2,312.00 1,860.00