Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part E (10 marks) Section A. On March 28 2022 Brightside Inc. has a gross payroll of $24,000 for the pay period. Brightside must

image text in transcribed

Part E (10 marks) Section A. On March 28 2022 Brightside Inc. has a gross payroll of $24,000 for the pay period. Brightside must withhold from the employees $2,900 in income taxes, Employment Insurance premians of $1,000, and CPP premiums of $1,488 Required: Prepare the necessary journal entries for Brightside to record both the gross pay earned by employees and the employer portion of these payroll taxes. The employer pays 1.4 times the employee El premium and additional 100% of the employees' CPP Date 2022. 3/28 Account Debit Credit Section B. In 2022, Jammer Jumps sold 100 bounce houses at $3,400 each. The bounce houses carry a five-year warranty for defects. Jammer estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $42,000. Claims of $11,000 were actually incurred during the year to honour warranties. Required: What was the ending balance in the warranty liability at the end of 2022? S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

26th edition

128574361X, 978-1305446052, 1305446054, 978-1285743615

More Books

Students also viewed these Accounting questions

Question

Why is IMC considered cross-functional? Explain with an example.

Answered: 1 week ago