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Please help me out with this question! Thank you!! Platinum Records has four employees who are paid on the 1st and 15th of each month
Please help me out with this question! Thank you!!
Platinum Records has four employees who are paid on the 1st and 15th of each month for the work they performed in the preceding half-month. At September 30, each employee is owed gross pay of $1,750, but each one must have 10% of their pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.1% of their gross pay and pay Employment Insurance premiums of 1.62% of their gross pay. Prepare the payroll journal entries required to reflect these amounts, along with Platinum's share of CPP contributions and El premiums, in Platinum's September 30 financial statements. Prepare the journal entry to record the accrual of the payroll on September 30. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.) Accounts and Explanation Debit Credit Date September 30 7000 700 357 Salaries Expense Employee Income Tax Payable Canada Pension Plan Payable Employment Insurance Payable Salaries Payable To record payroll costs. 113.4 5829.6 Prepare the journal entry to record the related employer's liability on September 30. (Enter debits first, then credits. Enter explanations on the last line of the journal. Round amounts to the nearest cent.) Accounts and Explanation Debit Credit Date September 30 Canada Pension Plan Expense Employment Insurance Expense Canada Pension Plan Payable Employment Insurance PayableStep by Step Solution
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