Question

A company has three employees, each of whom has been employed since January 1, earns $3,600 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, $1,393.70 (liability for February). b. EI Payable, $576.68 (liability for February). c. CPP Payable, $923.32 (liability for February). d. Employees’ Medical Insurance Payable, $1,960.00 (liability for January and February). During March and April, the company completed the following related to payroll. Mar. 17 Issued cheque #320 payable to the Receiver General for Canada. The cheque was in payment of the February employee income taxes, EI, and CPP amounts due. Mar. 31 Prepared a general journal entry to record the March payroll register, which had the following column totals: EI Income Taxes CPP Medical Insurance Total Deductions Net Pay Office Salaries Shop Salaries $197.64 $1,393.70 $491.29 $474.34 $2,556.97 $8,243.03 $3,600.00 $7,200.00 Mar. 31 Recorded the employer’s $474.34 liability for its 50% contribution to the medical insurance plan of employees and 6% vacation pay accrued to the employees. Mar. 31 Prepared a general journal entry to record the employer’s costs resulting from the March payroll. Apr. 17 Issued cheque #575 payable to the Receiver General for Canada in payment of the March mandatory deductions. Apr. 17 Issued cheque #576 payable to All Canadian Insurance Company in payment of the employee medical insurance premiums for the first quarter. Required: Prepare the entries to record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places. Do not round intermediate calculations.)

Answer 1

			in $
No	Date	General Journal	DR	Cr
1	Mar-17	Employess Income tax payable	1393.7
		EI payable	576.68
		CPP payable	923.32
		Cash		2893.7
2	Mat 31	Shop Salaries expenses	3600
		Office salaries expenses	7200
		EI payable		197.64
		CPP payable		491.29
		Employees Income tax payable		1393.7
		Employees Medical Insurance payable		474.34
		Salaries payable		8243.03
3	Mar-31	Benefits expenses	1122.34
		Employees Medical insurance payable		474.34
		Estimated Vacation pay liability (3600+7200)*6%		648
4	Mar-31	Payroll tax expenses/Benefit expenses	767.99
		EI payable (197.64*1.4 times generally)		276.70
		CPP payable		491.29
5	Apr-17	EI payable (197.64+276.7)	474.34
		CPP payable	982.58
		Employees Income tax payable	1393.7
		Cash		2850.616
6	Apr-17	Employees Medical Insurance payable	2908.68
		Cash (1960+474.34+474.34)		2908.68