Problem Al-4B Journal entries for payroll transactions 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: Medical Income Taxes CPP Insurance $2,107.05 $442.80 $345.00 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. Apr. 14 Issued cheque #764 payable to the Receiver General for Canada in payment of the March mandatory deductions. EI $142.20 Total Deductions Required Prepare the entries to record the transactions. Net Pay $3,037.05 $5,962.95 Office Shop Salaries Salaries $3,000 $6,000 14 Issued cheque #765 payable to National Insurance Company in payment of the employee medical insurance premiums for the first quarter.
Problem Al-4B Journal entries for payroll transactions 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: Medical Income Taxes CPP Insurance $2,107.05 $442.80 $345.00 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. Apr. 14 Issued cheque #764 payable to the Receiver General for Canada in payment of the March mandatory deductions. EI $142.20 Total Deductions Required Prepare the entries to record the transactions. Net Pay $3,037.05 $5,962.95 Office Shop Salaries Salaries $3,000 $6,000 14 Issued cheque #765 payable to National Insurance Company in payment of the employee medical insurance premiums for the first quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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