Question

The payroll register for Molly’s Greenhouse is as follows:

MOLLY'S GREENHOUSE Payroll Register Month Ending June 30, 2017
Employee		Gross Pay		Claim Code		CPP		EI		Income Tax		Total Deductions		Net Pay		Cheque #
Karine		4,640.00		5		212.93		87.20		541.16		841.29		3,798.71		40
Kelsey		2,550.00		4		109.57		47.98		130.22		287.77		2,262.23		41
Dani		3,940.00		1		178.48		74.15		518.47		771.10		3,168.90		42
Brooke		3,130.00		4		138.28		58.88		253.47		450.63		2,679.37		43
Total		14,260.00				639.26		268.21		1,443.32		2,350.79		11,909.21

Assume Molly issued the cheques on June 30.

1. Prepare the summary journal entry to record the payment of the June 30 payroll to employees.

2.Prepare a summary journal entry on June 30 to accrue the employer payroll costs.

3.Post the journal entries from parts (a) and (b) to the T-accounts

4.Prepare the journal entry to record Molly’s Greenhouse’s remittance to the Received General on July 15, 2017

5.Post the journal entry from part (d) to the T-accounts and prove ending balances in the payables accounts equal zero

Answer 1

	Journal entries;
Date	Account's tittle	Debit $	Credit $
30-Jun	Salary Expenses ( Gross Pay )	14,260
	CPP payable		639.26
	EI Payable		268.21
	Income Tax Payable		1,443.32
	Salary Payable		11,909.21
	( Salary expense due for the month of June)
30-Jun	Salary Payable	11,909
	Cash		11,909
	( payment of payrol cost to emoployees )
15-Jul	CPP payable	639
	EI Payable	268
	Income Tax Payable	1,443
	Cash		2,351
	( Remittance to the Received General )

Salary Expenses
Date	Account's tittle	Debit $	Account's tittle	Credit $
30-Jun	CPP payable	639.26
	EI Payable	268.21
	Income Tax Payable	1,443.32
	Salary Payable	11,909.21
30-Jun			Ending Balance ( Income Statement )	14,260.00
	TOTAL	14,260.00	TOTAL	14,260.00
CPP payable
Date	Account's tittle	Debit $	Account's tittle	Credit $
30-Jun			Salary Expenses	639.26
30-Jun	Ending Balance	639.26
	TOTAL	639.26	TOTAL	639.26
1-Jul			Beginning balance	639.26
15-Jul	Cash	639.26
	TOTAL	639.26	TOTAL	639.26
EI Payable
Date	Account's tittle	Debit $	Account's tittle	Credit $
30-Jun			Salary Expenses	268.21
30-Jun	Ending Balance	268.21
	TOTAL	268.21	TOTAL	268.21
1-Jul			Beginning balance	268.21
15-Jul	Cash	268.21
	TOTAL	268.21	TOTAL	268.21
Income Tax Payable
Date	Account's tittle	Debit $	Account's tittle	Credit $
30-Jun			Salary Expenses	1,443.32
30-Jun	Ending Balance	1,443.32
	TOTAL	1,443.32	TOTAL	1,443.32
1-Jul			Beginning balance	1,443.32
15-Jul	Cash	1,443.32
	TOTAL	1,443.32	TOTAL	1,443.32
Salary Payable
Date	Account's tittle	Debit $	Account's tittle	Credit $
30-Jun			Salary Expenses	11,909.21
30-Jun	Cash	11,909.21
30-Jun	Ending Balance	-
	TOTAL	11,909.21	TOTAL	11,909.21