Town Lake Company has completed the payroll for January 2012, reflecting the following data:

Required:
1. What amount of additional compensation expense must be paid by the company? What was the amount of the employees' take-home pay?
2. List the liabilities that are reported on the company's statement of financial position at January 31,2012 . The employees' take-home pay was paid on that day.
3. Would employers react differently to a 10 percent increase in the employer's share of CPP than to a 10 percent increase in the basic level of salaries? Would financial analysts react differently?

Transcribed Image Text:

Salaries and wages earned Employee income taxes withheld Union dues withheld CPP contributions" El contributions* $8,013 each for employer and employee. *Employment insurance, employees' share. $69,000 16,900 1,200 6,013 3,514