Part $2$

Twilight Zone Productions Inc $($TZPI$)$ has five employees who are paid on the $1$st and $16$th of each month

for the work they performed in the preceding half$$month $($paid semi$$monthly; for instance, Jan $115$

work is paid Jan $16$; and Jan $1631$ work is paid Feb $1).$ For the pay period February $16$ to February $28,$

$2024,$ each employee is owed gross pay as follows:

Job Position # employees Gross pay details $($for Feb $1628)$

Production manager $1$ salary $ $1,925$ per semi$$monthly period

Social media coordinator $1$ salary $ $1,460$ per semi$$monthly period

Administrative assistant $1$ hourly $74$ hours @ $$18$ per hour plus $4\%$ vacation paid

on each paycheque

Production workers $2$ salary $$1,290$ per semi$$monthly period

Each employee must have $21\%$ of their gross pay withheld for income taxes. Each must also make

Canada Pension Plan contributions of $5\mathrm{.}95\%$ of their gross pay and pay Employment Insurance premiums

of $1\mathrm{.}66\%$ of their gross pay. Each employee has $$19$ of union dues deducted from their paycheque. The

Administrative Assistant also voluntarily chooses to have $$35$ per paycheque deducted and donated to

the Heart and Stroke Foundation of Canada charitable organization.

Requirements:

$1.$ Calculate the gross pay, deductions, and net pay for the Administrative Assistant $($just this one

employee$).$

$2.$ Calculate the total gross pay owing to all employees for the pay period February $1628.$

$3.$ Prepare the payroll general journal entries required to reflect these amounts for the pay period

February $1628,$ along with TZPI$$s share of CPP contributions and EI premiums, in TZPI$$s February

$28$ financial statements. Recall that both employers and employees make contributions to CPP and

EI$.$ Refer to your textbook for more details about whether, and how much, the company has to

match regarding specified payroll deduction$/$contributions$.$

$[$Hint: There should be two separate summary journal entries, one for the recording of the payroll

for all employee costs, and the second for the company$$s costs$/$contributions$,$ as shown in the

textbook and lecture slides.$)]$

$4.$ Show what TZPI would report on its balance sheet at February $28$ before the payments are made.

$[$Hint: Prepare a partial balance sheet showing only the current liabilities section for all of the

accounts used in the above transactions.$]$

$5.$ Show what TZPI would report on income statement for the month ended February $28.$

$[$Hint: Prepare a partial income statement for all the revenue$/$expense accounts used in the above

transactions. Ignore the revenue$/$expense amounts for the payroll period Feb $115,$ as that

information has not been provided.$]$

$6.$ Prepare the payroll general journal entries required to reflect:

$($i$)$ the payment of the February $1628$ 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 $12,$ and

$($iii$)$ the payment of the charitable donations to the Heart and Stroke Foundation of Canada on

March $13.$

$($Round all calculations for dollar amounts to the nearest penny.$)$