The payroll records of Fine Foods Company provide the following data for the bi-weekly pay period ended July 12.

Employee

Gross Pay

Gross Pay To Date

Sally

$1,800

$55,000

Bobby

1,500

36,350

Jane

1,280

24,100

CPP is 4.95% and EI is 1.88%. Use these percentages when calculating CPP and EI (we arent going to concern ourselves with any payroll exemptions that are explained in appendix 10A). Income Tax is deducted as follows;

$510 for Sally, $465 for Bobby and $380 for Jane.

All employees have Registered Retirement Savings Plan deductions (RRSP) as follows; $ 150 for Sally, $200 for Bobby and $100 for Jane. The company matches the RRSP deductions. Additionally, the employees have to pay union dues as follows; Sally $70, Bobby $60 and Jane $50.

Instructions

a)What is the net pay for each employee for this biweekly pay period? Prepare a payroll register and include a grand total at the bottom and a net pay amount for each employee. Show the grand total of the net pay also. Round all numbers to two decimals.

b)Prepare the general journal entry to accrue the employee payroll on July 12. The payroll is not paid until the following week.

c)Prepare the general journal entry to record Fine Foods payroll tax expense for July 13.

d) Prepare the journal entry to pay the employees on July 19. Assume each employee receives their own individual cheque.

e) Prepare the journal entry to pay Canada Revenue Agency (CRA) on July 31.

f) Prepare the journal entry to pay union dues on August 1. (later on the company will write a cheque for the RRSPs so dont worry about these now.