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Section A. On March 28th 2022 Brightside Inc. has a gross payroll of $24,000 for the pay period. Brightside must withhold from the employees
Section A. 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. Date 2022. 3/28 Account Debit Credit Section B. In 2022, Jammer Jumps sold 100 bounce houses at $3,400 each. The bounce houses carry a five-year warranty for defects. Jammer estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $42,000. Claims of $11,000 were actually incurred during the year to honour warranties. Required: What was the ending balance in the warranty liability at the end of 2022? $_
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