Question
Baltessen Builders has five employees who are paid on the 1st and 16th of each month for the work they performed in the preceding half-month
Baltessen Builders has five employees who are paid on the 1st and 16th of each month for the work they performed in the preceding half-month (paid semi-monthly; for instance Jan 1-15 work is paid Jan 16; and Jan 16 -31 work is paid Feb 1). For the pay period February 16 to February 28, each employee is owed gross pay of $1,000, but each one must have 15 % of their gross pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5. 45% of their gross pay and pay Employment Insurance premiums of 1.58% of their gross pay. Each employee has $23 of union dues deducted from their paycheque.
- How would the following look like; prepared the payroll general journal entries required to reflect these amounts for the pay period February 16 - 28, along with Baltessen's share of CPP contributions and EI premiums, in Baltessen's February 28 financial statements. Recall that both employers and employees make contributions to CPP and EI.
- What should Baltessen report on its balance sheet at February 28, and on its income statement for the month ended February 28 before the payment is made?
- Prepare the payroll general journal entries required to reflect: (i) the payment of the February 16-28 payroll liabilities to the Canada Revenue Agency (CRA) on March 10, and (ii) the payment of the union dues to Unifor Union Local #123 on March 13.
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