Question
Madawaska Timber Inc. had the following transactions: Feb. 14 The board of directors for Madawaska Timber Inc. approved a bonus payout to employees in the
Madawaska Timber Inc. had the following transactions:
Feb. 14 The board of directors for Madawaska Timber Inc. approved a bonus payout to employees in the amount of $255,000. The source deductions on the bonus earned were CPP of $12,623, which Madawaska matched; EI of $4,157, which it matched at 1.4 times; and income taxes of $51,000 and finally, $2,550 to the Union of Forest Workers (UFW) to cover union dues. In addition, Madawaska was required to pay Workers Compensation Board (WCB) of British Columbia premiums of 6.54% based on the bonus costs. Feb. 15 Paid the bonus approved by the board of directors on February 14. Feb. 20 Made the remittance to the government related to the February 14 bonus. Feb. 21 Made the remittance to UFW related to the February 14 bonus.
Determine the amount of the employees' net wages, the total wages expense for Madawaska and the total amount that is payable to the government on Feb. 20. (Round answers to decimal places, eg. 125.) Employees' Net Wages $ 187220 Total Wages Expense $ 292670 Total amount that is Payable to the Government A 99630 Date Account Titles and Explanation Debit Credit (Employee Entry)Step by Step Solution
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