Question
Nameless Co. prepared the following payroll summary for the current month: Administrative salaries $10,000 Sales salaries $15,000 Shop wages $21,000 Employee deductions: Federal & provincial
Nameless Co. prepared the following payroll summary for the current month: Administrative salaries $10,000 Sales salaries $15,000 Shop wages $21,000 Employee deductions: Federal & provincial income taxes withheld $11,500 Insurance premiums $1,430 Union dues $1,190 CPP is 4.95% and EI is 1.73%, and none of the current months salaries and wages exceed the CPP or EI limits. Nameless makes a private pension contribution equal to 9% of each employees gross earnings. A vacation pay accrual is also made at 4% of the gross earnings. (Ignore the CPP annual exemption for this question) Prepare the journal entries to record: a) the months payroll accrual b) the months employer payroll costs (CPP & EI) c) The employers private pension contribution and vacation pay accrual.
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