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1) Harold Munster earned $2,400 in wages and $650 in sales commissions for the month of November. Harold's payroll deductions include income tax of 15
1) Harold Munster earned $2,400 in wages and $650 in sales commissions for the month of November. Harold's payroll deductions include income tax of 15 percent, Canada Pension of 4.95 percent on eamings and Employment Insurance of 1.83 percent on earnings. Prepare the journal entries to record the payroll and the payroll taxes imposed on Harold Munster. Explanations are not required and ignore the annual exemption for the CPP calculation. 2) The Clancy and Flanagan Partnership incurred a net loss of $40,000 for the current year. The beginning capital balances of the partners were respectively, $35,000 and $15,000. Prepare journal entries to transfer the net loss to the partners' capital accounts based on the following agreements. a) No mention of net income/loss agreement. b) "Salary" of $30,000 to Clancy and $10,000 to Flanagan, balance divided in the ratio of 3:2. c) Interest of 10% on beginning capital balances, balance divided in the ratio of 2:3
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