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mployer has calculated the following amounts for an employee during the last week of March 2021 $1,500 300 78.08 23.70 Gross wages Income taxes Canada Pension Plan Employment Insurance ired lculate the employee's net pay, assuming an income tax rate of 20% is applied. 100066 1000 €

mployer has calculated the following amounts for an employee during the last week of March 2021 $1,500 300 78.08 23.70 Gross wages Income taxes Canada Pension Plan Employment Insurance ired lculate the employee's net pay, assuming an income tax rate of 20% is applied. 100066 1000 €

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An employer has calculated the following amounts for an employee during the last week of March 2021. $1,500 300 78.08 23.70 Required a) Calculate the employee's net pay, assuming an income tax rate of 20% is applied. Gross wages Income taxes Canada Pension Plan Employment Insurance b) Assuming the employer's contribution is 100% for Canada Pension Plan and 140% for Employment Insurance, what is the employer's total expense? c) Prepare the journal entries to record payroll for the employee and record the employer's contribution. JOURNAL Date AP-6A Account Title and Explanation AP-10A AP-9B AP-16B + Debit Credit
Transcribed Image Text:An employer has calculated the following amounts for an employee during the last week of March 2021. $1,500 300 78.08 23.70 Required a) Calculate the employee's net pay, assuming an income tax rate of 20% is applied. Gross wages Income taxes Canada Pension Plan Employment Insurance b) Assuming the employer's contribution is 100% for Canada Pension Plan and 140% for Employment Insurance, what is the employer's total expense? c) Prepare the journal entries to record payroll for the employee and record the employer's contribution. JOURNAL Date AP-6A Account Title and Explanation AP-10A AP-9B AP-16B + Debit Credit
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