Question 1

On March 28th 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 EI premium and additional 100% of the employees CPP