Question 3

Assiniboine Company has three employees who each earn $3,000 (monthly) and are paid on the 2^nd of each month (for the month just ended). The following payroll register for March (of the current year) has been prepared. Explanations are optional.

							Distribution
Gross		Income		Medical	Total		Office	Sales
Pay	EI	Tax	CPP	Insurance	Deductions	Net Pay	Salaries	Salaries
$9,000	$190	$1,900	$400	$350	$2,840	$6,160	$3,000	$6,000

REQUIRED: Using the partial Chart of Accounts at the top of the next page,

1. Prepare the regular payroll journal entry on March 31^st to accrue the payroll for the month.

2. Prepare the journal entry to accrue the companys costs (contributions) resulting from the previous entry.

3. Assiniboine matches the employees contribution to the medical insurance plan and accrues vacation pay at 4%. Prepare a journal entry to accrue these fringe benefits.

Journalize the following three cheques:

4. On April 3^nd, a cheque was issued to pay the employees.

5. On April 15^th, a cheque was issued, payable to the Receiver General, to pay for Marchs mandatory deductions.

6. A cheque was issued on April 21^st to ABC Insurance in payment of the employee medical premiums for the month of March.

Date

Account Titles and Explanation

PR

Debit

Credit

(a)

(b)

(c)

(d)

(e)

(f)

Partial Chart of Accounts:

Cash

CPP Payable

EI Payable

Employees Income Tax Payable

Estimated Vacation Pay Liability

Medical Insurance Payable

Salaries Payable

Benefits Expense

CPP Expense

EI Expense

Office Salaries Expense

Sales Salaries Expense