Question

Questions: PF2

22 - Given ·the following information from the payroll register, calculate the net pay and prepare a journal entry for the month of February for Northern Publishers.

Salaries and wages	$316,458.52
Bonus	$10,538.43
Canada Pensi1on Plan contributions	$15,087.1 4
Employment Insurance premiums	$6,147.54
Income tax	$65,399.39
Registered Retirement Savings Plan contributions	$9,493.76
Union dues	$1,995.00
Charitable donations	$1,.225.00

Journal Entry #12345
Date	Account name	Debit	Credit
Feb. 28
Total

23 - Which type of account shows the owners’ or shareholders’ worth or interest in the organization?

• Equity
• Asset
• Liability
• Revenue

24 - Which of the following dates will determine the proper remittance date?

• The payroll processing date
• The pay period end date
• The date the statement of wages is delivered to employees
• The payroll cheque date

25 - The Canada Revenue Agency requires mandatory electronic filing when employers file a total of more than:

• 25 of each type of information slips
• 25 various in information slips
• 50 of each type of information slips
• 50 various information slips

26 - In which province is tile group benefits premium subject to the Retail Sales Tax?

• Manitoba
• Nova Scotia
• Northwest Territories
• British Columbia

27 - The salaries and wages incurred, for employees who actually perform the work or provide the service or sell goods, are referred to as:

• direct labour costs
• indirect labour costs
• employee benefits expenses
• commission expenses

28 - Which of the following items appear on a Balance Sheet?

• Net Profit
• Expenses
• Revenue
• Liabilities

29 - If the administration of the pension plan contribution remittance is outsourced to a third-party plan administrator, who is responsible for making sure the remittance deadlines are being met under the requirements of the legislation in each pl.an member's jurisdiction?

• The employer
• The provincial, government
• The payroll service provider
• The plan administrator

Answer 1

A.22)

Calculation of Net Salary payable

Salaries and Wages	$316,458.52
Bonus	$10,538.43
Gross Salary a)	$326,996.95
Deductions
Canada Pension Plan Contribution	$15,087.14
Employment Insurance Premium	$6,147.54
Income Tax	$65,399.99
Registered Retirement Saving Plan Contribution	$9,493.76
Union Dues	$1,995.00
Charitable Donations	$1,225.00
Total Deductions b)	$99,348.43
Net Salary Payable a)-b)	$227,648.52

Journal Entry

28-Feb	Journal Entry number #12345
	Account Name	Debit	Credit
	Salaries and Wages	$316,458.52
	Bonus	$10,538.43
	To Canada Pension Plan Contribution		$15,087.14
	To Employment Insurance Premium		$6,147.54
	To Income Tax		$65,399.99
	To Registered Retirement Saving Plan Contribution		$9,493.76
	To Union Dues		$1,995.00
	To Charitable Donations		$1,225.00
	To Salary Payable Account		$227,648.52

A.23) Equity

As equity means shareholders or owner's worth in the organization.

A.24) The pay period end date.

Pay period end date will help in determining the proper remittance date.

A.25) 50 various information slips

A.26) Nova Scotia

A.27) Commission expenses.

Commission is given to employees on behalf of selling goods or services which motivates them to sell more.

A.28) Liabilities.

Every Other item is of income statement except Assets/Equity and Liability. Hence Liability is the correct option.

A.29) Plan Administrator