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Diamond and Company Limited sells hardware and sanitary products for a number of years. The company has 4 employees on their payroll and are
Diamond and Company Limited sells hardware and sanitary products for a number of years. The company has 4 employees on their payroll and are paid every month. All the employees are paid a fixed amount of salary and are not entitled for any overtime. Below is the information on all the employees: Staff Number Name of Employees 1. Adam Singh E120002 2. Sheila Chang E130035 3. David Chow E291002 4. Nathan Patel E234098 Salary per Year ($) 30,500 24,000 7,000 40,000 Additional Information: 1. Income tax at the rate of 20% is applicable to those employees whose income is over $30,000. 2. Superannuation Deduction is 6% per annum for each employee and 6% contributed by the employer. 3. Medical insurance Deduction of $20 per month is applicable to all staff. 4. Union Fees of $100 per year for all employees. 5. Assume that the employer liabilities for each month are paid in same month. REQUIRED: 1. Prepare the payroll register. 2. Prepare the general journal entries to record the payroll for the month of May, the payment of salaries to employees and employer liabilities for only this month.
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