Madawaska Timber Inc. had the following transactions: Feb. 14 The board of directors for Madawaska Timber...

 

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Madawaska Timber Inc. had the following transactions: Feb. 14 The board of directors for Madawaska Timber Inc. approved a bonus payout to employees in the amount of $260,000. The source deductions on the bonus earned were CPP of $12,870, which Madawaska matched; El of $4,238, which it matched at 1.4 times; and income taxes of $52,000 and finally, $2,600 to the Union of Forest Workers (UFW) to cover union dues. In addition, Madawaska was required to pay Workers' Compensation Board (WCB) of British Columbia premiums of 6.54% based on the bonus costs. Feb. 15 Paid the bonus approved by the board of directors on February 14. Feb. 20 Made the remittance to the government related to the February 14 bonus. Feb. 21 Made the remittance to UFW related to the February 14 bonus. Determine the amount of the employees' net wages, the total wages expense for Madawaska and the total amount that is payable to the government on Feb. 20. (Round answers to O decimal places, e.g. 125.) Employees' Net Wages $ Total Wages Expense Total amount that is Payable to the Government LA BA $ Prepare all the journal entries for the transactions listed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (Employee Entry) (Employer Entry) Feb. 20 (Pay) (Gov't Remittance Entry) (UFW Remittance Entry) Madawaska Timber Inc. had the following transactions: Feb. 14 The board of directors for Madawaska Timber Inc. approved a bonus payout to employees in the amount of $260,000. The source deductions on the bonus earned were CPP of $12,870, which Madawaska matched; El of $4,238, which it matched at 1.4 times; and income taxes of $52,000 and finally, $2,600 to the Union of Forest Workers (UFW) to cover union dues. In addition, Madawaska was required to pay Workers' Compensation Board (WCB) of British Columbia premiums of 6.54% based on the bonus costs. Feb. 15 Paid the bonus approved by the board of directors on February 14. Feb. 20 Made the remittance to the government related to the February 14 bonus. Feb. 21 Made the remittance to UFW related to the February 14 bonus. Determine the amount of the employees' net wages, the total wages expense for Madawaska and the total amount that is payable to the government on Feb. 20. (Round answers to O decimal places, e.g. 125.) Employees' Net Wages $ Total Wages Expense Total amount that is Payable to the Government LA BA $ Prepare all the journal entries for the transactions listed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (Employee Entry) (Employer Entry) Feb. 20 (Pay) (Gov't Remittance Entry) (UFW Remittance Entry)

Answer rating: 100% (QA)

Bonus 260000 Less Deductions CPP 12870 EI 4238 Income taxes 52000 UFW contribution 2600 71708 Employ... View the full answer