Glacier Records has four employees who are paid on the 1st and 15th of each month for the work they performed in the precedinghalf-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. Prepare the payroll journal entries required to reflect these amounts, along with Glacier's share of CPP contributions and EI premiums, in Glacier's June 30 financial statements.

Prepare the journal entry to record the accrual of the payroll on June 30.

(Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.)

Date

Accounts and Explanation

Debit

Credit

Jun. 30

Salaries Expense

5000

Employee Income Tax Payable

500

Canada Pension Plan Payable

255

Employment Insurance Payable

81

Cash

4164

To record payroll costs.

Prepare the journal entry to record the related employer's liability on

June

30.

(Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.)

Date

Accounts and Explanation

Debit

Credit

Jun. 30

255

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