1. Sheffield Enterprises’ payroll for the month of March, 2020 is shown below.

Salaries and Wages for the month of March 2020		$	214,000
Income Taxes withheld from employees			47,372
EI withheld from employees			1.66%
CPP withheld from employees			4.95%
Union dues withheld from employees			20,914

Prepare the journal entries for the employee and employer portion related to payroll costs. Also, prepare the journal entries to record the remittance of the March payroll deductions to the Receiver General for Canada and to the union. (Hint: The employer's CPP share is the same as the employee's share, and the employer's EI share is 1.4 times that of the employee.) (Round answer to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record the salaries and wages paid and the employee payroll deductions)
(To record employer contributions)
(To record remittance)
(To record remittance)

List of Accounts

• Accounts Payable
• Accounts Receivable
• Accretion Expense
• Accumulated Depletion - Mineral Resources
• Accumulated Depreciation - Drilling Platform
• Accumulated Depreciation - Oil Tanker Depot
• Accumulated Depreciation - Buildings
• Accumulated Depreciation - Equipment
• Asset Retirement Obligation
• Bonus Expense
• Bonus Payable
• Buildings
• Cash
• Container Sales Revenue
• Cost of Goods Sold
• CPP Contributions Payable
• Current Tax Expense
• Depreciation Expense
• Dividends Payable
• Drilling Platform
• EI Premiums Payable
• Employee Benefit Expense
• Employee Income Tax Deductions Payable
• Estimated Inventory Returns
• Estimated Inventory Returns
• Estimated Liability for Premiums
• Equipment
• Freight-in
• Furniture and Fixtures
• Gain on Settlement of ARO
• GST Payable
• GST Receivable
• HST Payable
• HST Receivable
• Income Tax Expense
• Income Tax Payable
• Income Tax Receivable
• Interest Expense
• Interest Payable
• Inventory
• Inventory of Premiums
• Land Improvements
• Liability for Guarantee
• Litigation Expense
• Litigation Liability
• Loss Due to Environmental Clean-up
• Loss on Expropriation
• Loss on Guarantee
• Loss on Settlement of ARO
• Materials, Cash, Payables
• Mineral Resources
• No Entry
• Notes Payable
• Notes Receivable
• Oil Tanker Depot
• Parental Leave Benefits Payable
• Payroll Tax Expense
• Premium Expense
• Premium Liability
• Property Tax Expense
• Property Tax Payable
• Prepaid Expenses
• Property Tax Expense
• Property Tax Payable
• PST Payable
• Purchase Discounts
• Purchase Discounts Lost
• Purchase Returns and Allowances
• Purchases
• Refund Liability
• Rent Expense
• Rent Payable
• Rent Revenue
• Retained Earnings
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Returns and Allowances
• Sales Revenue
• Sales Tax Payable
• Service Revenue
• Sick Pay Wages Payable
• Subscriptions Revenue
• Trucks
• Unearned Revenue
• Union Dues Payable
• Vacation Wages Payable
• Warranty Expense
• Warranty Liability
• Warranty Revenue

2. On April 1, 2020, Martinez Inc. signed a $116,400, 8%, six month promissory note. The company’s year-end was July 31.

Prepare the journal entry on the books of Martinez Inc. to record the issue of the note. (Round answer to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Apr. 1, 2020

On April 1, 2020, Martinez Inc. signed a $116,400, 8%, six month promissory note. The company’s year-end was July 31.

Prepare the journal entry on the books of Martinez Inc. to record the issue of the note. (Round answer to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Apr. 1, 2020

Prepare the journal entry on the books of Martinez Inc. to record the year-end interest accrual. (Round answer to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 31, 2020

. Prepare the journal entry on the books of Martinez Inc. to record repayment of the note on September 30, 2020. Martinez does not use reversing entries. (Round answer to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Sept. 30, 2020

List of Accounts

• Accounts Payable
• Accounts Receivable
• Accretion Expense
• Accumulated Depletion - Mineral Resources
• Accumulated Depreciation - Drilling Platform
• Accumulated Depreciation - Oil Tanker Depot
• Accumulated Depreciation - Buildings
• Accumulated Depreciation - Equipment
• Asset Retirement Obligation
• Bonus Expense
• Bonus Payable
• Buildings
• Cash
• Container Sales Revenue
• Cost of Goods Sold
• CPP Contributions Payable
• Current Tax Expense
• Depreciation Expense
• Dividends Payable
• Drilling Platform
• EI Premiums Payable
• Employee Benefit Expense
• Employee Income Tax Deductions Payable
• Estimated Inventory Returns
• Estimated Inventory Returns
• Estimated Liability for Premiums
• Equipment
• Freight-in
• Furniture and Fixtures
• Gain on Settlement of ARO
• GST Payable
• GST Receivable
• HST Payable
• HST Receivable
• Income Tax Expense
• Income Tax Payable
• Income Tax Receivable
• Interest Expense
• Interest Payable
• Inventory
• Inventory of Premiums
• Land Improvements
• Liability for Guarantee
• Litigation Expense
• Litigation Liability
• Loss Due to Environmental Clean-up
• Loss on Expropriation
• Loss on Guarantee
• Loss on Settlement of ARO
• Materials, Cash, Payables
• Mineral Resources
• No Entry
• Notes Payable
• Notes Receivable
• Oil Tanker Depot
• Parental Leave Benefits Payable
• Payroll Tax Expense
• Premium Expense
• Premium Liability
• Property Tax Expense
• Property Tax Payable
• Prepaid Expenses
• Property Tax Expense
• Property Tax Payable
• PST Payable
• Purchase Discounts
• Purchase Discounts Lost
• Purchase Returns and Allowances
• Purchases
• Refund Liability
• Rent Expense
• Rent Payable
• Rent Revenue
• Retained Earnings
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Returns and Allowances
• Sales Revenue
• Sales Tax Payable
• Service Revenue
• Sick Pay Wages Payable
• Subscriptions Revenue
• Trucks
• Unearned Revenue
• Union Dues Payable
• Vacation Wages Payable
• Warranty Expense
• Warranty Liability
• Warranty Revenue

Answer rating: 100% (QA)

Answer 1 Account and Explanation Debit Credit Salaries and Wages Expense 214... View the full answer