1. The payroll of Burton One. for March 2018 is as follows. Total payroll was $485.000...

1. The payroll of Burton One. for March 2018 is as follows. Total payroll was $485.000 Pensionable (CPP) and insurable Etsy carnings were $365,000. Income taxes in the amount of $85,000 were withheld, as were $8,000 in union dues. The El tax rate was 1.88% for employees and 2.632% for employers, and the CPP rate was 4.95% for employees and 4.95% for employers.

(a) Prepare the necessary journal entries to record the payroll if the salaries and wages paid and the employer payroll taxes are recorded separately. 12 Marks
(b) Prepare the entries to record the payment of all required amounts to the Receiver General. 12 Marks
c) For every dollar of salaries and wages that Burton commits to pay, what is the actual
payroll cost to the company? 1 Mark

Expert Solution

ekkarill92 answered 2 years ago

1. The payroll of Burton Inc. for March 2018 is as follows. Total payroll was $485,000....

1. The payroll of Burton Inc. for March 2018 is as follows. Total payroll was $485,000. Pensionable (CPP) and insurable (EI) earnings were $365,000. Income taxes in the amount of $85,000 were withheld, as were $8,000 in union dues. The EI tax rate was 1.88% for employees and 2.632% for employers, and the CPP rate was 4.95% for employees and 4.95% for employers. (a) Prepare the necessary journal entries to record the payroll if the salaries and wages paid and...

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