Encore Records has two employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At February 28, each employee is owed gross pay of $1,000, but each one must have 10% of their pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.1% of their gross pay and pay Employment Insurance premiums of 1.62% of their gross pay. Prepare the payroll journal entries required to reflect these amounts, along with Encore's share of CPP contributions and El premiums, in Encore's February 28 financial statements. Prepare the journal entry to record the accrual of the payroll on February 28. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.) Date February 28 Salaries Expense Accounts and Explanation Date February 28 Employee Income Tax Payable Employment Insurance Payable Canada Pension Plan Payable Salaries Payable To record payroll costs. Y Accounts and Explanation Debit 2000 C Prepare the journal entry to record the related employer's liability on February 28. For CPP, assume the employer matches the employee's contribution dollar for dollar. For El, assume the employer pays a premium of $1.40 for every dollar in premiums paid by the employee. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.) Debit Credit 200 32.4 102 1665.6 Credit
Encore Records has two employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At February 28, each employee is owed gross pay of $1,000, but each one must have 10% of their pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.1% of their gross pay and pay Employment Insurance premiums of 1.62% of their gross pay. Prepare the payroll journal entries required to reflect these amounts, along with Encore's share of CPP contributions and El premiums, in Encore's February 28 financial statements. Prepare the journal entry to record the accrual of the payroll on February 28. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.) Date February 28 Salaries Expense Accounts and Explanation Date February 28 Employee Income Tax Payable Employment Insurance Payable Canada Pension Plan Payable Salaries Payable To record payroll costs. Y Accounts and Explanation Debit 2000 C Prepare the journal entry to record the related employer's liability on February 28. For CPP, assume the employer matches the employee's contribution dollar for dollar. For El, assume the employer pays a premium of $1.40 for every dollar in premiums paid by the employee. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.) Debit Credit 200 32.4 102 1665.6 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Encore Records has two employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At February 28, each employee is owed gross pay of
$1,000, but each one must have 10% of their pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.1% of their gross pay and pay Employment Insurance
premiums of 1.62% of their gross pay. Prepare the payroll journal entries required to reflect these amounts, along with Encore's share of CPP contributions and El premiums, in Encore's February
28 financial statements.
Prepare the journal entry to record the accrual of the payroll on February 28. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the
nearest cent.)
Date
February 28 Salaries Expense
Accounts and Explanation
Date
February 28
Employee Income Tax Payable
Employment Insurance Payable
Canada Pension Plan Payable
Salaries Payable
To record payroll costs.
Debit
Accounts and Explanation
2000
(...)
Prepare the journal entry to record the related employer's liability on February 28. For CPP, assume the employer matches the employee's contribution dollar for dollar. For El, assume the employer
pays a premium of $1.40 for every dollar in premiums paid by the employee. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the
nearest cent.)
Debit
Credit
200
32.4
102
1665.6
Credit
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