Prepare the journal entry to record the accrual of the payroll on September 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Records has
five
employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At
September
30,
each employee is owed gross pay of
$2,500,
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
Silver's
share of CPP contributions and EI premiums, in
Silver's
September
30
financial statements.Question content area bottom
Part 1
Prepare the journal entry to record the accrual of the payroll on
September
30.
(Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.)|
Date
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Accounts and Explanation
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Debit
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Credit
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September 30
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To record payroll costs.
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Part 2
Prepare the journal entry to record the related employer's liability on
September
30.
For CPP, assume the employer matches the employee's contribution dollar for dollar. For EI, 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.)Expert Solution
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