ACC $1170$ Final Review

Question #$10-$ Payroll

The payroll records of Lucy's Laces for the month of March showed the following amounts for total earnings: sales employees, $$8,000$; office employees, $$5,000.$ Total withholdings consisted of employment insurance premiums, $$398,$ Canada Pension Plan, $$291,$ and income tax, $$2,430.$

a$)$ Prepare the general journal entry to record the salary of the employees.

b$)$ Prepare the general journal entries to record the payroll and related expenses. Assume that the employer's rate for employment insurance is $1\mathrm{.}4$ times the employees premium and that the employers contribution to Canada Pension Plan is the same as the employees.