Payroll Taxes}

Kinsella Inc. has a gross payroll of \(\$ 10,000\) for the pay period. Kinsella must also withhold \(\$ 1,200\) in income taxes from the employees, Employment Insurance premiums of \(\$ 30\), and CPP premiums of \(\$ 100\).

\section*{Required:}

Prepare the necessary journal entries for Kinsella to record both the gross pay earned by employees and the employer portion of these payroll taxes. The employer pays 1.4 times the employee EI premium and additional \(100 \%\) of the employees' CPP.

\section*{Cornerstone Exercise