Part 1

Baltessen Builders has five 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 isowed gross pay of $1,000, but each one must have 15% of their gross pay withheld for income taxes.

Each must also make Canada Pension Plan contributions of 5. 45% of their gross pay and pay

Employment Insurance premiums of 1.58% of their gross pay. Each employee has $ 23 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 Baltessen's share of CPP contributions and EI premiums, in Baltessens 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 Baltessen 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.

Part 2

Pay for Performance

Communities are frequently concerned about whether or not police are vigilant in carrying out their responsibilities. Several communities have experimented with incentive compensation for police. In particular, some cities have paid members of the police force based on the number of arrests that they make.

Requirements:

1.Discuss the likely positive and negative effects of this compensation policy.

2. Suggest improvements to the compensation policy.

Part 3

The primary purpose of managerial accounting is to provide information useful for management decisions. Many of the managerial accounting techniques that you learn in this course will be useful for decisions you make in your everyday life. After you graduate, one of the next important decisions you'll have to make is where to work. Suppose that you go for job interviews and are given an offer of employment by two competing firms for the same entry-level position. They are offering the same salary and benefits. Their offices are in different cities. They are both public companies, so their annual reports containing financial and other information are available to you for free on their websites.

Requirements:

For each of the following factors, provide an example, and briefly explain your example, of the

numerical information you would need to help decide which firm to work for.

1.Which company is currently more profitable.

2.Which city is more economical to live in.

3.Which company has better long-term employment prospects.

4.Which company might have more opportunities for advancement.