Question

Hilton Ventures Ltd. had the following transactions:

Oct. 31		Recorded wages earned by the employees during the month, which amounted to $59,000. The source deductions on these wages were CPP of $2,921, EI of $965, and income taxes of $8,850.
Nov. 2		Paid the wages recorded on October 31.
Nov. 15		Made the remittance to the government related to the October 31 payroll.

A) Determine the amount of the employees’ net wages.

B) Prepare the journal entries necessary to record these transactions:

Oct. 31... to record wages payable to employees

Oct. 31... to record employer's liabilities

Nov. 2

Nov. 15  

**NOTE THAT EMPLOYERS MATCH EMPLOYEE CPP PREMIUMS AND PAY 1.4 TIMES THEIR EI PREMIUMS**

Answer 1

A)	Net Wages	$46,264
	(59,000 - 2,921 - 965 - 8,850)
B)	Date	Account and Explanation	Debit	Credit
	Oct 31	Wages Expense	59,000
		CPP Payable		2,921
		EI Payable		965
		Employee Income Tax Payable		8,850
		Wages Payable		46,264
	Oct 31	Payroll Expense	4,272
		CPP Payable		2,921
		EI Payable		1,351
	Nov 2	Wages Payable	46,264
		Cash		46,264
	Nov 15	Employee Income Tax Payable	8,850
		CPP Payable	5,842
		EI Payable	2,316
		Cash		17,008