In: Accounting
A company showed the following information in its payroll
register for the week ended March 16, 2015:
EI Premium |
Income Taxes | Medical Insurance | CPP | Union Dues |
Total Deductions | Net Pay | Sales Salaries Expense | Office Salaries Expense | Shop Salaries Expense |
26.70 | 303.35 | 47.50 | 66.96 | 90.00 | 534.50 | 885.50 | 1,420 | ||
30.08 | 388.39 | 52.50 | 75.87 | 105.00 | 651.84 | 948.16 | 1,600 | ||
35.72 | 494.34 | 25.00 | 90.72 | 127.50 | 773.28 | 1,126.72 | 1,900 | ||
23.50 | 229.29 | 35.00 | 58.54 | 78.75 | 425.08 | 824.92 | 1,250 | ||
116.00 | 1,415.37 | 160.00 | 292.09 | 401.25 | 2,384.70 | 3,785.30 | 1,420 | 1,250 | 3,500 |
1. Prepare a General Journal entry to record the
payroll register information. (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.)
2. Prepare a General Journal entry to record the
employer’s payroll expenses resulting from the payroll. (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.)
3. Prepare General Journal entries to accrue
employee fringe benefit costs for the week. Assume that the company
matches the employees’ payments for medical insurance and
contributes an amount equal to 8% of each employee’s gross pay to a
retirement program. Also, each employee accrues vacation pay at the
rate of 6% of the wages and salaries earned. The company estimates
that all employees eventually will be paid their vacation pay.
(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.)
Trans | Date | Particulars | Debit | Credit | |
1 | March 16, 2015 | No Entry Required | |||
Note: Only one entry for accounting payroll expenses is required, which is at serial no. 2. No entry is required to record the payroll register information. | |||||
2 | March 16, 2015 | Sales Salary Expenses A/c | 1,420.00 | ||
Office Salary Expenses A/c | 1,250.00 | ||||
Shop Salary Expenses A/c | 3,500.00 | ||||
To EI Premium A/c | 116.00 | ||||
To Income Taxes Payable A/c | 1,415.37 | ||||
To Medical Insurance A/c | 160.00 | ||||
To CPP A/c | 292.08 | ||||
To Union Dues A/c | 401.25 | ||||
To Salary Payable A/c | 3,785.30 | ||||
(Common or Individual A/cs) | |||||
6,170.00 | 6,170.00 | ||||
Being Salary due for the week ending March 16, 2015 accounted for | |||||
Note: CPP a/c is reduced by 0.01 as total of deductions for first row/Sales salary is exceeding by this amount) | |||||
3 | March 16, 2015 | Employer Medical Expenses Contribution A/c | 160.00 | ||
Employer Contribution for Retirement Exp A/c | 493.60 | ||||
Leave Salary Expenses A/c | 370.20 | ||||
To Medical Insurance A/c | 160.00 | ||||
To Retirement Fund A/c | 493.60 | ||||
To Leave Salary Payable A/c | 370.20 | ||||
1,023.80 | 1,023.80 | ||||
Being employer's expenses on salary for the week ending March 16, 2015 accounted for (i.e. Retirement contr @8%, leave salary @6% of gross salary, medical equal to employee contribution) | |||||
Note: 1. On payment of Salary, Salary payable a/c shall be dbited | |||||
2. On payment of expenses, respective fringe benefit payable a/c to be debited |