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 premiums 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, Jamner 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?

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

Advanced Accounting

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

12th edition

133451860, 978-0133451863

More Books

Students also viewed these Accounting questions

Question

What are the objectives of Human resource planning ?

Answered: 1 week ago

Question

Explain the process of Human Resource Planning.

Answered: 1 week ago