An extract from the trial balance of Paragon Corporation at December 31, 2016 is reproduced below:

Additional Information: Employees pay 2% of their gross salaries to the government employment insurance plan and 4% of gross salaries to the government pension plan. The company matches employees' government pension contributions 1 to 1, and employment insurance contributions 1.4 to 1.
Required:
1. Prepare the adjusting entry that was posted, including a plausible description.
2. Prepare the journal entries to record the payments on January 5, 2017 to employee J. Smith and the Government of Canada.
Provide descriptions for journal entries. General ledger account numbers are not necessary.

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Amount in Amount in unadjusted adjusted trial balance $50,000 trial balance a. Salaries expense (re. J. Smith) b. Employee income taxes payable c. Employment insurance payable d. Government pension payable $52,000 500 96 160 1,000