The following information was taken from the payroll records of Locker Flooring Ltd. for the two-week pay period ending September 10:

Gross Pay$2,640.00Deductions:Federal income tax$404.25Provincial income tax197.00Canada Pension Plan124.12Employment Insurance45.67Health Plan100.00871.04Net Pay$1,768.96

(a)

Record the compound General Journal entry on September 10 for this payroll.

(b)

Record the General Journal entry on September 10 for the employer's contributions to CPP, EI, and the health plan. The employer contributes an equal amount to the health plan.

(c)

Record entries in the Cash Payments Journal for:

the issuance of the paycheques on September 10

the remittance of the health plan contributions to Sun Life on September 30

the remittance of income taxes, CPP, and EI to Canada Revenue Agency on October 14

PRACTICE EXERCISE 5

The following information is taken from the payroll records of Letzelter Manufacturing on June 30.

Gross PayProduction Department$18,700General Office5,20023,900Deductions:Federal income tax$3,068Provincial income tax2,046CPP717EI574Company Pension478RSP Contributions4,000Medical Plan239Canada Savings Bonds850Union Dues74812,720Total Net Pay$11,180

(a)

Record a compound General Journal entry for the payroll on June 30.

(b)

Record a compound General Journal entry for the employer's contributions to CPP, EI, company pension, and medical plan on June 30:

CPP and EI as usual

company pension and medical plan on an equal basis

(c)

Record entries in the Cash Payments Journal for:

the issuance of the paycheques on June 30

the remittance to ManuLife on June 30 for the company pension plan, RSP contributions, and the medical plan

the payment on June 30 to Canadian Trust for the Canada Savings Bonds contributions

the remittance of the union dues on June 30

the remittance of income tax, CPP, and EI to Canada Revenue Agency on July 14