Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Banff Records has four employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month.
Banff Records has four employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At June 30, each employee is owed gross pay of $1,250, but each one must have 10% of their pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.1% of their gross pay and pay Employment Insurance premiums of 1.62% of their gross pay. The following entries were recorded for the month of June (Click on the icon to view the journal entries.) Show what Banff would report on its balance sheet at June 30 and on its income statement for the month ended on that date. BREE Prepare the liability section of Banff Records" balance sheet at June 30 (Leave any unused cells blank. Enter amounts to the nearest cent.) Banff Records Balance Sheet (partial) As at June 30 Liabilities: Amounts Current Liabilities: Journal entries Date Accounts and Explanation Debit Credit Jun. 30 Salaries Expense 5.000.00 Employee Income Tax Payable 500.00 Canada Pension Plan Payable 255.00 81.00 4,164.00 Employment Insurance Payable Salaries Payable To record salaries and employee withholdings payable. Date Accounts and Explanation Debit Credit Jun. 30 Canada Pension Plan Expense 255.00 113.40 255.00 Employment Insurance Expense Canada Pension Plan Payable Employment Insurance Payable 113.40 To record employer portion of CRP and E/ withholdings payable
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