ings? On January 31, 2017, Cardston Company had the following payroll lability a
ID: 2342813 • Letter: I
Question
ings? On January 31, 2017, Cardston Company had the following payroll lability accounts in its ledger: ns Ganada Pension Plan payable Disability insurance payable Employment Insurance payable Income tax payable s 7,887 1,280 3,755 16,252 Life insurance payable Union dues payable Vacation pay payable Workers' compensation payable $ 855 1,450 20,520 4,275 In February, the following transactions occurred Feb. 4 Sent a cheque to the union treasurer for union dues. 7 Sent a cheque to the insurance company for the disability and life insurance. 13 Issued a cheque to the Receiver General for the amounts due for CPP, El, and income tax. 20 Paid the amount due to the workers' compensation plan 28 Completed the monthly payroll register, which shows gross salaries $92,600, CPP withheld S4281; El withheld $1,695; income tax withheld $17,595; union dues withheld $1,574; and long-term disability insurance premiums $1,380. 28epared payroll cheques for the February net pay and distributed the cheques to the employees. Recorded an adjusting journal entry to record February employee benefits for CPP, EI, workers' com pe ns tion at 5% of gross pay, vacation pay at 4% of gross pay, and life insurance at 1% of gross pay.Explanation / Answer
Answer:
(a)
(b)
Date Accounts Debit $ Credit $ Feb - 4 Union Dues payable 1,450 Bank account 1,450 (Union dues paid to Union Treasurer) Feb - 7 Disability Insurance payable 1,280 Life Insurance payable 855 Bank account 2,135 (Disability and Life Insurance paid) Feb - 13 Canada Pension Plan payable 7,887 Employment Insurance payable 3,755 Income tax payable 16,252 Bank account 27,894 (CPP, EI, Income tax paid to Receiver General) Feb - 20 Worker's compensation payable 4,275 Bank account 4,275 (Paid amount to the worker's compensation plan) Feb - 28 Gross Salaries Expenses 92,600 Canada Pension Plan payable 4,281 Employment Insurance payable 1,695 Income tax payable 17,595 Union Dues payable 1,574 Disability Insurance payable 1,380 Net Payable to employees 66,075 (Completed monthly payroll register for Feb 2017) Feb - 28 Net Payable to employees 66,075 Bank account 66,075 (Net payable paid to employees) Feb - 28 Canada Pension Plan expense 4,630 Employment Insurance expense 4,630 Worker's compensation expense 4,630 Vacation pay expense 3,704 Life Insurance expense 926 Canada Pension Plan payable 4,630 Employment Insurance payable 4,630 Worker's compensation payable 4,630 Vacation pay payable 3,704 Life Insurance payable 926 (Adjusting journal entry for employee expenses for CPP, EI WC @5% of 92,600-Gross Pay, Vacation pay @4% of 92,600 and Life insurance @1% of 92,600)Related Questions
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