Question: Analyze Payroll Issue Note from Miranda: we received the payroll excerpt from our third-party provider and recorded the journal entry in full that they recommended
- Analyze Payroll Issue
Note from Miranda: we received the payroll excerpt from our third-party provider and recorded the journal entry in full that they recommended to us, except for your portion. Can you please review the payroll excerpt below and prepare the necessary journal entry we did pay you cash last Friday. For this journal entry please ignore account names.
Note: you are paid bi-weekly (26 pay periods per month) and both federal and provincial tax rates are applied correctly.
CPP has a rate of 5.45%
EI has a rate of 1.58%
| Employee ID #56 PayStub | ||
| Field | Rate | Total |
| Income: |
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| Salary | 35,000 |
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| Pay Periods | 26 | 1,346.15 |
| Deductions |
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| Federal Tax | 5.06% | (68.12) |
| Provincial Tax | 5.06% | (68.12) |
| CPP | 5.45% | (67.92) |
| EI | 1.58% | (19.69) |
|
| Net Pay | 1,122.30 |
Journal Entry:
| Entry # | Date | Description | Account Name | Debit or Credit | Amount |
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