Encore

Records

has

two

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

10%

of

their

gross

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.

Each

employee

has

$17

of

union

dues

deducted

from

their

paycheque.

Requirements:

1.

Prepare

the

payroll

general

journal

entries

required

to

reflect

these

amounts

for

the

pay

period

February

16

28,

along

with

Encore's

share

of

CPP

contributions

and

EI

premiums,

in

Encore's

February

28

financial

statements.

Recall

that

both

employers

and

employees

make

contributions

to

CPP

and

EI.

Refer

to

your

textbook

for

more

details.

2.

Show

what

Encore

would

report

on

its

balance

sheet

at

February

28,

and

on

its

income

statement

for

the

month

ended

February

28

before

the

payment

is

made.

3.

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