Boxcom Company had a total bi-weekly payroll of $ 90,000. The entire payroll was subject to...

Boxcom Company had a total bi-weekly payroll of $ 90,000. The entire payroll was subject to CPP (4.95%), EI (1.66%), and income tax withholdings of $ 11,880. Union dues of $ 1,125 and Health insurance premiums of $ 2,850 were also withheld. Boxcom will match employee CPP and 1.4 times employees EI

Instructions

Prepare the journal entries to record the employee wages/salaries and payroll deductions
Prepare the journal entries to record the employer payroll contributions
Prepare the journal entries to record the remittance to the Receiver General (Canada Revenue Agency)

Expert Solution

a.

Account Titles	Debit	Credit
Salaries and Wages Expense	$ 90,000.00
Employee Income taxes payable		$ 11,880.00
CPP Payable		$ 4,455.00
EI Payable		$ 1,494.00
Health insurance payable		$ 2,850.00
Union dues payable		$ 1,125.00
Cash / Salaries Payable		$ 68,196.00

b.

Account Titles	Debit	Credit
Payroll Tax Expense	$ 6,546.60
CPP Payable		$ 4,455.00
EI Payable		$ 2,091.60

c.

Account Titles	Debit	Credit
Employee Income taxes payable	$ 11,880.00
CPP Payable	$ 8,910.00
EI Payable	$ 3,585.60
Cash		$ 24,375.60

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