Question

An Employee, K. Kamocki, has the following information for her pay for the week ending September 23, 2019. Her employer contributes 100% the pension plan and 140% towards employment insurance

Hours.                                                  40
Hourly rate.                                     $16.50
Income tax.                                    $105.60
Pension plan.                                $30.23
Employment insurance               $10.69
Union Dues.                                   $21.00
Charitable Donations.                  $6.00

I) Prepare the journal entry to record the payroll entry to pay K. Kamocki

ii) Prepare the journal entry to record employers expense

iii) Prepare the journal entry on September 30, 2019 to record the cash payment for all amounts owed

Answer 1

(I) -- Prepare the journal entry to record the payroll entry to pay K. Kamocki.

Answer -

Date	Account Title and Explanation	Debit ($)	Credit ($)
September 23, 2019	Salaries and Wages Expense [40 hours*$16.50] Income Tax Payable Pension Plan Payable Employment Insurance Payable Union Dues Payable Charitable Donations Payable Salaries and Wages Payable [balancing figure] ( To record payroll)	660 - - - - - -	- 105.60 30.23 10.69 21.00 6.00 486.48

.

(II) -- Prepare the journal entry to record employers expense.

Answer -

Date	Account Title and Explanation	Debit ($)	Credit ($)
September 23, 2019	Employees Benefits Expense Pension Plan Payable [$30.23*100%] Employment Insurance Payable [$10.69*140%] (To Record employers expenses)	45.2 - -	- 30.23 14.97

.

(III) -- Prepare the journal entry on September 30, 2019 to record the cash payment for all amounts owed.

Answer -

Date	Account Title and Explanation	Debit ($)	Credit ($)
September 30, 2019	Income Tax Payable Pension Plan Payable [$30.23+$30.23] Employment Insurance Payable [$10.69+$14.97] Union Dues Payable Charitable Donations Payable Salaries and Wages Payable Cash (To record cash payments)	105.60 60.46 25.66 21.00 6.00 486.48 -	- - - - - - 705.2