Hilton Ventures Ltd. had the following transactions: Oct. 31 Recorded wages earn

Question

Hilton Ventures Ltd. had the following transactions:

Oct. 31 Recorded wages earned by the employees during the month, which amounted to $29,950. The source deductions on these wages were CPP of $1,640, EI of $630, and income taxes of $4,030. Nov. 2 The company paid the wages recorded on October 31. Nov. 15 Made the remittance to the government related to the October 31 payroll. Determine the amount of the employees' net wages. Net wages $ LINK TO TEXT LINK TO TEXT Prepare the journal entries necessary to record these transactions. (Enter debit entries first followed by cr Date Account and explanation Debit Credit Oct. 31| To record wages payable to employees.) (To record employer's liabilities.) Nov. 2 Nov. 15

Explanation / Answer

Net wages: $23,650

Given that the amount of wages earned by employee =$29,950

Deductions : CPP on wages    =$1,640

                                   EI                  = $630

                               Income taxes =$4,0306

          NET WAGES =($29,950-$6,300) =$23,650

date

particulars

post ref

debit

credit

Oct-31

Cash

        29,950

To             CPP

$         1,640

To            EI

$             630

To             income tax

$         4,030

To            wages

$       23,650

Oct-31

CPP,EI, income tax

$         6,300

Wages

$       23,650

To              cash

$       29,950

Nov-02

Wages

$       29,950

To           cash

$       29,950

Nov-15

wages expenses

$         6,300

To      CPP

$         1,640

To       EI

$             630

To        income tax

$         4,030

date

particulars

post ref

debit

credit

Oct-31

Cash

        29,950

To             CPP

$         1,640

To            EI

$             630

To             income tax

$         4,030

To            wages

$       23,650

Oct-31

CPP,EI, income tax

$         6,300

Wages

$       23,650

To              cash

$       29,950

Nov-02

Wages

$       29,950

To           cash

$       29,950

Nov-15

wages expenses

$         6,300

To      CPP

$         1,640

To       EI

$             630

To        income tax

$         4,030

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