Lloyd Braun Bedding Company pays its employees a total fixed monthly salary of $3197.99 As required, each pay issued to the employees features the following statutory deductions:

Income tax: $559.34
CPP: $155.07
EI: $61.35

Part A 

Lloyd Braun Bedding Company is required to pay as payroll benefits a matching amount of CPP and 1.4 times the amount of EI deducted from employees' pay.

Required:

Provide answers to each of the following questions. Input all your answers to the nearest penny (i.e. 2 decimal places). For example, enter $100 as "100.00". ONLY ENTER NUMERIC RESPONSES. DO NOT ENTER LETTERS, DOLLAR SIGNS, COMMAS, OR OTHER CHARACTERS OF KIND.

What amount should be recorded each month for Salary Expense? Blank 1. Calculate the answer by read surrounding text.
What amount will be credited to Cash for each pay issued by Lloyd Braun Bedding Company? Blank 2. Calculate the answer by read surrounding text.
What is the total amount debited to Employee Benefits Expense each month? Blank 3. Calculate the answer by read surrounding text.
What is the total liability related to payroll deductions (employee & employer remittances) recorded each month? Blank 4. Calculate the answer by read surrounding text.

Part B

Lloyd Braun Bedding Company's cash register showed total sales of $7425 for November. All sales are subject to the 13% HST (Harmonized Sales Tax).

Required

Provide answers to each of the following questions. Input all your answers to the nearest penny (i.e. 2 decimal places). For example, enter $100 as "100.00". 

Part C

On January 1, 2020, Lloyd Braun Bedding Company borrows $50,000 from the Newman Bank at 6% interest, for 5 years. Terms call for equal yearly instalments of $10000 principal plus interest, payable each December 31.

Required:

Complete the following journal entries to record the first two annual instalment payments. [NOTE: Input all your answers to the nearest penny (i.e. 2 decimal places). For example, enter $100 as "100.00". 

Part D

On January 1, 2020, , Elaine Enterprise Inc. issued $70000 of 5%, semi-annual interest bonds with a 10-year term, for proceeds totaling $64,793. At that time, the market rate of interest on similar bonds was 6%. Interest payment dates are July 1st and January 1st. Elaine Enterprises, Inc. uses the effective-interest method to account for its bonds, as required under IFRS.

Required:

Complete the following journal entries to record the first payment on July 1st and the interest accrual on December 31. Round all answers and enter as whole dollars only.

Answer rating: 100% (QA)

Part A 1 Salary Expense 319799 given 2 Cash credited 319799 55934 15507 6135 242223 3 Employee Benef... View the full answer