Question
1. Jane Chan works for ABCO Corporation at a salary of $700 per week. She is paid every two weeks. The following is deducted from
1. Jane Chan works for ABCO Corporation at a salary of $700 per week. She is paid every two weeks. The following is deducted from her bi-weekly pay: income tax $185, CPP $60, and EI premiums of $25. The employer is also required to make employee contributions of $60 to CPP and EI premiums of $35. Indicate which of the following statements are correct (Select as many as appropriate.) a. Jane's net pay for the period will be $1,130 b. The salary expense for the two week period will be $1,400 c. The employee benefit expense for the two week period will be $285. d. Immediately before making a payment to the government, the company will have a balance of $60 in its CPP payable account. e. Immediately before making any payments to the government, the company will have a balance of $185 in its Employee Income Tax Payable account f. The total payment remitted to the government for amount withheld from Jane's pay for contributions to CPP and EI will be $355. g. The EI Payable, CPP Payable and Employee Income Tax Payable accounts are not considered current liabilities because companies usually employ employees for longer than a year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started