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A company has three employees, each of whom has been employed since January 1, earns $3,000 per month, and is paid on the last day of each month. On March 1, the
following accounts and balances appeared in its ledger.
a. Employees' Income Taxes Payable, $1,298.25 (liability for February).
b. EI Payable, $358.56 (liability for February).
c. CPP Payable, $804.36 (liability for February).
d. Employees' Medical Insurance Payable, $1,380.00 (liability for January and February).
During March and April, the company completed the following related to payroll:
$
Mar. 17 Issued cheque # 635 payable to the Receiver General for Canada. The cheque was in payment of the February employee income taxes, EI, and CPP amounts due.
31 Prepared a general journal entry to record the March payroll register, which had the following column totals:
EI
$149.40
Apr.
Income
Taxes
$1,298.25
ayroll register:
CPP
Required
Prepare the entries to record the transactions.
Medical
Insurance
Total
Deductions
Net
Pay
Office
Salaries
$402.18
$345.00
$2,214.63
$6,785.37
$3,000
31 Recorded the employer's $345.00 liability for its 50% contribution to the medical insurance plan of employees and 6% vacation pay accrued to the employees.
31 Prepared a general journal entry to record the employer's payroll costs resulting from the March payroll.
14 Issued cheque #764 payable to the Receiver General for Canada in payment of the March mandatory deductions.
14 Issued cheque #765 payable to National Insurance Company in payment of the employee medical insurance premiums for the first quarter.
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Salaries
$6,000