Sally Lee works for a tugboat company and is paid weekly. She earns $900 a week for

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Question:

Sally Lee works for a tugboat company and is paid weekly. She earns $900 a week for a 40- hour week and time and a half for anything over 40 hours per week. During that last week of January 2021, Sally worked 43 hours. The income tax withholdings are 20% of gross earnings. Canada Pension Plan deductions are 4.95% of gross earnings and Employment Insurance deductions are 1.88% of gross earnings. Ignore the basic Canada Pension Plan exemption. Sally was paid for the last week of January the following week on Feb 4th .

a) Calculate Gross Pay to Sally Lee for the last week of January.

b) Prepare journal entries to record the following:

i. Accrual of Sally Lee's payroll at January 31.

ii. Accrual of employer payroll costs at January 31.

iii. Payment of the applicable deductions to Revenue Canada on February 3, 2021.