Background information:

You have recently started working at an accounting firm and the partner has assigned one of the clients, White Lily Hair Salon Inc. (White Lily), to you. The Payroll Manager, Jasmine Kaur, has taken a leave of absence from White Lily so the owner, Tracy Williamson, would like you to help her with some questions she has about her companys payroll.

The following information about the business is available:

Company Name White Lily Hair Salon Inc.

Industry Hair & Aesthetic Services

Location 518 Beauty Way, Winnipeg, Manitoba R4R 3WT

Business Number 98765 4321 RC 0001

Number of employees 8 comprised of office personnel, hairdressers and assistants, which include both part-time and full time employees

Ages of employees 16 to 65

Salary range of employees $25,000 to $132,000

Annual payroll 2020: $425,000 (actual)

2021: $450,000 (estimated)

Pay cycle Biweekly

Tracy asks for your assistance with the following questions related to payroll:

1. My payroll administrator already translated the employees Federal and Manitoba TD1 Personal Tax Credit Returns to the appropriate claim code.

Im hiring a new employee next week. How can I determine their claim codes?

(1 point)

13. The June 18, 2021 payroll register is summarized below. The company matches the employees payments for the retirement program and vacation pay is accrued at 8%. Please record the following:

a. What journal entries would be required to record this payroll register and employer expenses relating to this pay run? (8.5 points)

Office Salaries Hairdresser Salaries Total Earnings EI Premium CPP Premium Income Tax Retirement program Charitable donations

6,500.00 9,850.00 16,350.00 258.33 883.74 4,905.00 654.00 120.00

Note: Assume any health taxes and WCB premiums will already be recorded.

Prepare the journal entry to send the remittances to the CRA for the above June 18th pay period on July 15th. (3.5 points

14. Please prepare the Record of Employment (ROE) for Jasmine Kaur:

Jasmine Kaur

23 Daisy Lane

Winnipeg, MB R2W 1T2

SIN: 648 529 348

Jasmine has worked full time, 40 hours per week, for White Lily Hair Salon Inc. since January 16, 2019 and her last day worked was May 21, 2021. Her salary is $43,160. She plans to return to her payroll administrator position at the end of her leave, although Im not sure of the exact date yet.