Rippling Waters rents canoes and other water crafts to campers and hikers. On May 15, 2011, Rippling Waters prepared their semi-monthly payroll for their employees. The current CPP rate is 4.95%, the current EI rate is 1.78%, and the appropriate income tax rate is 20%. The employer pays half of the health care premium, and the employees pay the other half. Assume the employer contributes 100% towards the pension plan and 140% towards employment insurance. Payroll information for May 15, 2011 is listed below:

Employee

Total Hours

Hourly Rate

Health Care

M. Swift

87.5

$14.50

$18.00

S. Current

85.5

15.00

20.00

B. Wavey

73.5

13.50

14.00

a) Calculate gross and net pay for each employee:

b) Calculate the employer contributions:

c) Prepare the payroll journal entries for May 15, 2011 to record the salaries payable to the employees and accrue the employer contributions:

d) Prepare the entry to pay the employees on May 17, 2011:

e) Prepare the entry to pay the liability to the health insurance company on May 31, 2011:

f) Prepare the entry to pay the liabilities to the government on June 15, 2011: