7-439 EMPLOYEES & PAYROLL Module Setup and Processing Challenge Exercise 07 C7-3, Tool Shed Company (EMPLOYEES & PAYROLL, PAYABLES and COMPANY Modules) The company sells assorted tools and saw blades to both wholesale and retail customers. This exercise is a review of the EMPLOYEES & PAYROLL PAYABLES and COMPANY modules 1 > Refer to Exercise 1-16 to unzip the 07 7C-3 Tool Shed.exe file 2 Open the 07 7C-3 Tool Shed file. Payroll information: All employees are paid as noted in the information below. Overtime is paid at time and a half (regular pay plus regular pay). Vacation pay (4%) is retained from hourly and commission employees, until the employee takes a vacation. Vacation pay is not calculated for salaried employees The El rate is 1.4% times the employee deductions It is assumed that the employer is exempt from the Employee Health Tax (EHT). Union Dues are deducted from hourly and commission employees' paycheques The company has a pension plan The Company allows employees to receive a payroll loan up to $500.00 for extenuating circumstances The loan is repayable by all employees at $30.00 per pay. There are no outstanding loans January Pay Dates: Hourly and commission employees are paid weekly on Friday. Salaried employees are paid bi-monthly (15" and 31") Medical Pension Union De Safety Shoes Weekly January 3 January 10 January 17 January 24 January 31 BI-Monthly January 15 January 31 Deductions per pay period: Hourly employees Commission employees: Salary employees 3 Record and Post the following transactions for January Change employee "A-LAST NAME. First Name to your own name before processing Jan 2 Received "Memo Sal Rev' from the owner to reverse the December 31"payroll accrual in the amount of $1,500 for all employees. (The total accrual for wages and salaries was accrued in Salaries Expense at Dec 31, 2024.) Jan 3 Process a payroll cheque run for 1"payroll of month. Note: A-LAST NAME. First Name worked 40 hours + 4 hours overtime, and Canon, Marisa worked 40 hours and earned $450 in commissions Canon, Marisa phoned this morning requesting one week off for personal reasons and asked for her vacation pay. Released total vacation pay owing (40 hours) as of January 3". Did not deduct for medical plan or union dues Jan 6 7-440 Learning Sage 50 Premium Accounting 2019.0 Jan 7 A-LAST NAME First Name brought his paycheque to the office. It was confirmed there was an error with the paycheque. In addition to 40 regular hours First Name should have been paid for 5 Overtime hours. Prepare the necessary reversing and correcting entries. (Use the approach presented in your textbook.) Issue a replacement cheque (next available cheque number) for the correct amount to YOUR ACTUAL LAST, First Name. Jan 10 Jan 13 Hourly payroll for the week ending January 10 is recorded. A-LAST NAME, First Name worked 40 regular hours. Canon, Marisa returned to work today. She was approved for a staff loan of $500.00 as her car motor needed repairs. Issue next cheque. Issued next cheque to the Receiver General for the EI, CPP and Income Tax payable balances outstanding at January 1, 2025. Jan 13 Jan 15 Jan 17 Bi-monthly salary payroll for January 15 is recorded. Process a payroll cheque run for the weekly pay period: A-LAST NAME, First Name worked 40 regular hours plus 2 overtime hours. Canon, Marisa worked 32 hours and earned commission of $623 January Pay Dates Weekly January 3 January 10 Jan 24 January 24 January 31" Process a payroll cheque run for the weekly pay period: A-LAST NAME. First name worked 40 hours, no overtime. Canon, Marisa worked 40 hours this week and earned $500 commission BI-Monthly January 15 January 31" Jan 31 Process the payroll cheque run for ALL employees. Note: A-LAST NAME, First Name worked 32 regular hours. Canon, Marisa worked 36 hours for $580 commission 4 Print the reports indicated below after you have inputted the transactions a) Journal Entries All (No corrections) for the period of the entries. b) Payroll Journal Entries, with Corrections to Jan 31. c) Balance Sheet at Jan 31. d) Income Statement e) Employee Detail (all employees for month of January). Cheque Log at Jan 31. 7-439 EMPLOYEES & PAYROLL Module Setup and Processing Challenge Exercise 07 C7-3, Tool Shed Company (EMPLOYEES & PAYROLL, PAYABLES and COMPANY Modules) The company sells assorted tools and saw blades to both wholesale and retail customers. This exercise is a review of the EMPLOYEES & PAYROLL PAYABLES and COMPANY modules 1 > Refer to Exercise 1-16 to unzip the 07 7C-3 Tool Shed.exe file 2 Open the 07 7C-3 Tool Shed file. Payroll information: All employees are paid as noted in the information below. Overtime is paid at time and a half (regular pay plus regular pay). Vacation pay (4%) is retained from hourly and commission employees, until the employee takes a vacation. Vacation pay is not calculated for salaried employees The El rate is 1.4% times the employee deductions It is assumed that the employer is exempt from the Employee Health Tax (EHT). Union Dues are deducted from hourly and commission employees' paycheques The company has a pension plan The Company allows employees to receive a payroll loan up to $500.00 for extenuating circumstances The loan is repayable by all employees at $30.00 per pay. There are no outstanding loans January Pay Dates: Hourly and commission employees are paid weekly on Friday. Salaried employees are paid bi-monthly (15" and 31") Medical Pension Union De Safety Shoes Weekly January 3 January 10 January 17 January 24 January 31 BI-Monthly January 15 January 31 Deductions per pay period: Hourly employees Commission employees: Salary employees 3 Record and Post the following transactions for January Change employee "A-LAST NAME. First Name to your own name before processing Jan 2 Received "Memo Sal Rev' from the owner to reverse the December 31"payroll accrual in the amount of $1,500 for all employees. (The total accrual for wages and salaries was accrued in Salaries Expense at Dec 31, 2024.) Jan 3 Process a payroll cheque run for 1"payroll of month. Note: A-LAST NAME. First Name worked 40 hours + 4 hours overtime, and Canon, Marisa worked 40 hours and earned $450 in commissions Canon, Marisa phoned this morning requesting one week off for personal reasons and asked for her vacation pay. Released total vacation pay owing (40 hours) as of January 3". Did not deduct for medical plan or union dues Jan 6 7-440 Learning Sage 50 Premium Accounting 2019.0 Jan 7 A-LAST NAME First Name brought his paycheque to the office. It was confirmed there was an error with the paycheque. In addition to 40 regular hours First Name should have been paid for 5 Overtime hours. Prepare the necessary reversing and correcting entries. (Use the approach presented in your textbook.) Issue a replacement cheque (next available cheque number) for the correct amount to YOUR ACTUAL LAST, First Name. Jan 10 Jan 13 Hourly payroll for the week ending January 10 is recorded. A-LAST NAME, First Name worked 40 regular hours. Canon, Marisa returned to work today. She was approved for a staff loan of $500.00 as her car motor needed repairs. Issue next cheque. Issued next cheque to the Receiver General for the EI, CPP and Income Tax payable balances outstanding at January 1, 2025. Jan 13 Jan 15 Jan 17 Bi-monthly salary payroll for January 15 is recorded. Process a payroll cheque run for the weekly pay period: A-LAST NAME, First Name worked 40 regular hours plus 2 overtime hours. Canon, Marisa worked 32 hours and earned commission of $623 January Pay Dates Weekly January 3 January 10 Jan 24 January 24 January 31" Process a payroll cheque run for the weekly pay period: A-LAST NAME. First name worked 40 hours, no overtime. Canon, Marisa worked 40 hours this week and earned $500 commission BI-Monthly January 15 January 31" Jan 31 Process the payroll cheque run for ALL employees. Note: A-LAST NAME, First Name worked 32 regular hours. Canon, Marisa worked 36 hours for $580 commission 4 Print the reports indicated below after you have inputted the transactions a) Journal Entries All (No corrections) for the period of the entries. b) Payroll Journal Entries, with Corrections to Jan 31. c) Balance Sheet at Jan 31. d) Income Statement e) Employee Detail (all employees for month of January). Cheque Log at Jan 31