P114B Assume that Marcy Jones is a marketing director in Metro Mobilitys head office in Toronto. During 2018 she worked for the company all year at a $6,500 monthly salary. She also earned a year-end bonus equal to 20 percent of her salary.

Joness monthly income tax withholding for 2018 was $1,762.28. Also, she paid a one-time withholding tax of $4,095.11 on her bonus cheque. She paid $307.31 per month toward the CPP until the maximum ($2,593.80) had been withheld. In addition, Joness employer deducted $106.50 per month for EI until the maximum ($858.22) had been withheld. Jones authorized the following deductions: 1.5 percent per month of her monthly pay to Metros charitable donation fund and $68 per month for life insurance.

Metro Mobility incurred CPP expense equal to the amount deducted from Joness pay. EI cost the company 1.4 times the amount deducted from Joness pay. In addition, the company provided Jones with the following benefits: dental and drug insurance at a cost of $65 per month, and pension benefits to be paid to Jones upon retirement. The pension contribution is based on her income and was $5,350 in 2018.

Required

1. Compute Joness gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest cent.
2. Compute Metro Mobilitys total 2018 payroll cost for Jones.
3. Prepare Metro Mobilitys summary general journal entries at December 31 (explanations are not required) to record its expense for the following:
   1. Joness total earnings for the year, her payroll deductions, and her net pay. Debit Salary Expense and Executive Bonus Compensation as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay.
   2. Employer payroll expenses for Jones. Credit the appropriate liability accounts.
   3. Benefits provided to Jones. Credit Health Insurance Payable and Company Pension Payable.

*Computing and recording payroll amounts