Platinum Records has five employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. On November 30, each employee is owed gross pay of $1,400, but each one must have 10% of pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.45% of gross pay as well as pay Employment Insurance premiums of 1.58% from gross pay. Read the requirements 1. Prepare the payroll journal entries required to reflect these amounts, along with Platinum's share of CPP contributions and El premiums, in Platinum's November 30 financial statements. 2. Show what Platinum would report on its Balance Sheet as of November 30 and on its Income Statement for the month ended on that date.
Platinum Records has five employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. On November 30, each employee is owed gross pay of $1,400, but each one must have 10% of pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.45% of gross pay as well as pay Employment Insurance premiums of 1.58% from gross pay. Read the requirements 1. Prepare the payroll journal entries required to reflect these amounts, along with Platinum's share of CPP contributions and El premiums, in Platinum's November 30 financial statements. 2. Show what Platinum would report on its Balance Sheet as of November 30 and on its Income Statement for the month ended on that date.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter10: Payroll Register (pr)
Section: Chapter Questions
Problem 4R
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:Platinum Records has five employees who are paid on the 1st and 15th of each month for the work they performed in
the preceding half-month. On November 30, each employee is owed gross pay of $1,400, but each one must have 10%
of pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.45% of gross pay as
well as pay Employment Insurance premiums of 1.58% from gross pay.
Read the requirements
1. Prepare the payroll journal entries required to reflect these amounts, along with
Platinum's share of CPP contributions and El premiums, in Platinum's
November 30 financial statements.
2. Show what Platinum would report on its Balance Sheet as of November 30 and
on its Income Statement for the month ended on that date.
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