Question
At February 28, ABC Co. has gross pay of $50,000 for this pay period for its employees. Personal income tax is deducted at 25% of
- At February 28, ABC Co. has gross pay of $50,000 for this pay period for its employees. Personal income tax is deducted at 25% of gross pay. CPP is 5.25% for both employer and employee. EI is 1.58% for employee and employer pays 1.4 times employee amount. Union dues of $1,500 (total) are also deducted. ABC paid the employees their net pay on February 28 and all other remittances will be made in March.
- Prepare the journal entry(ies) on Feb 28 for ABC to record the Feb 28 payroll.
B) XYZ Co. in an HST registrant and started business on Feb 1, 2020. In February, they purchased $100,000 of inventory, had sales of $125,000, and purchased $30,000 of equipment. All purchases and sales were subject to 15% HST.
- How much HST is owed/owing (refund) for February?
- Prepare the journal entries to record the transactions for February.
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Financial accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
IFRS Edition
9781119153726, 978-1118285909
