A company has three employees, each of whom has been employed since January 1, earns $3,350 per
Question:
A company has three employees, each of whom has been employed since January 1, earns $3,350 per month, and is paid on the last day of each month. On March 1, the following accounts and balances appeared in its ledger. a. Employees? Income Taxes Payable, $1,296.90 (liability for February). b. EI Payable, $509.70 (liability for February). c. CPP Payable, $857.10 (liability for February). d. Employees? Medical Insurance Payable, $1,860.00 (liability for January and February). During March and April, the company completed the following related to payroll. Mar. 17 Issuedcheque #320 payable to the Receiver General for Canada. The cheque was in payment of the February employee income taxes, EI, and CPP amounts due. Mar. 31 Prepared a general journal entry to record the March payroll register, which had the following column totals: Mar, 31 Recorded the employer?s $441.40 liability for its 50% contribution to the medical insurance plan of employees and 6% vacation pay accrued to the employees. Mar, 31 Prepared a general journal entry to record the employer?s costs resulting from the March payroll. Apr. 17 Issuedcheque #525 payable to the Receiver General for Canada in payment of the March mandatory deductions. Apr. 17 Issued cheque #526 payable to All Canadian Insurance Company in payment of the employee medical insurance premiums for the first quarter. Required: Prepare the entries to record the transactions.
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann