Question
Sampson Hotel has three employees who are paid on an hourly basis, plus time and one half for hours in excess of 44 hours per
Sampson Hotel has three employees who are paid on an hourly basis, plus time and one half for hours in excess of 44 hours per week. Payroll information for the week ending June 14, 2020 is listed below.
Employee | Hours Worked | Hourly Rate | Income Tax | CPP | EI |
A. Knopf | 40 | $14.20 | $56.80 | $26.29 | $8.97 |
B. Penguin | 45 | $16.70 | $75.15 | $36.36 | $12.01 |
T. Cruise | 47 | $15.60 | $73.32 | $36.19 | $11.95 |
Do not enter dollar signs or commas in the input boxes. Round your answers to 2 decimal places.
a) Calculate gross pay for each employee and the amount the employer will have to pay for CPP and EI.
Employee | Gross | Employer CPP | Employer EI |
A. Knopf | $Answer | $ | $ |
B. Penguin | $Answer | $ | $ |
T. Cruise | $Answer | $ | $ |
Total | $Answer | $ |
b) Prepare the journal entries for the June 14 payroll and the employer's portion of payroll. Employees will not be paid until next week.
For transactions with more than one debit or more than one credit, enter the debit accounts in alphabetical order followed by credit accounts in alphabetical order.
Date | Account Title and Explanation | Debit | Credit |
2020 | |||
Jun 14 | AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | ||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
Record payroll | |||
Jun 14 | AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | ||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
Record additional employer expenses |
c) Record the payment of the statutory deductions to the CRA on June 30, 2020.
Date | Account Title and Explanation | Debit | Credit |
2020 | |||
Jun 30 | AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | ||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
AnswerAccounts PayableAccounts ReceivableCanada Pension Plan PayableCashCharitable Donations PayableEmployee Benefits ExpenseEmployment Insurance PayableHealth Care PayableIncome Tax PayableSalaries & Wages ExpenseSalaries PayableVacation Pay ExpenseVacation Pay PayableWorkers' Compensation Payable | |||
Pay payroll liabilities due to CRA | |||
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