Question: 5) Using the information from the following Payroll Register, please complete the two Journal Entries below (One for recording Salary Payroll and one for recording
5) Using the information from the following Payroll Register, please complete the two Journal Entries below (One for recording Salary Payroll and one for recording Employer Expenses. (30 marks)
Company ABC
Salary Payroll Register
Dated January 31, 2021
| Cheque | Employee | Salary | CPP | EI | Federal Tax | Provincial Tax | Total Deductions | Net Pay |
| 1 | Bob Johnson | $2,000 | $101.66 | $31.60 | $199.40 | $107.10 | $439.76 | $1,560.24 |
| 2 | Larry David | $3,000 | $156.16 | $47.40 | $401.80 | $202.15 | $807.51 | $2,192.49 |
| 3 | Jack Ferguson | $3,500 | $183.51 | $55.30 | $501.05 | $255.10 | $994.96 | $2505.04 |
| 4 | Michael Thomas | $4,000 | $210.76 | $63.20 | $618.60 | $336.35 | $1228.91 | $2,771.09 |
| Total |
| $12,500 | $652.09 | $197.50 | $1,720.85 | $900.70 | $3,471.14 | $9,028.86 |
Company ABC
General Journal
Dated January 31, 2021 Accounting Period 01
| Account | Debit | Credit |
| Salary Expense |
|
|
| Canada Pension Payable |
|
|
| Employment Insurance Payable |
|
|
| Federal Income Taxes Payable |
|
|
| Provincial Income Taxes Payable |
|
|
| Salaries and Wages Payable |
|
|
| Total |
|
|
Explanation: To record salary payroll for January based on register dated January 31, 2021
Company ABC
General Journal
Dated January 31, 2021 Accounting Period 01
| Account | Debit | Credit |
| Canada Pension Expense (match) |
|
|
| Employment Insurance Expense (x1.4) |
|
|
|
|
|
|
| Workers Compensation Expense (.0246) |
|
|
| Vacation Pay Expense (4%) |
|
|
| Canada Pension Payable |
|
|
| Employment Insurance Payable |
|
|
| Workers Compensation Payable |
|
|
| Vacation Pay Payable |
|
|
| Total |
|
|
Explanation: To record employer expenses for January based on register dated January 31, 2021
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