Question

A company has three employees, each of whom has been employed since January 1, earns $3,350 per month, and is paid on the last day of each month. On March 1, the following accounts and balances appeared in its ledger.

a. Employees’ Income Taxes Payable, $1,296.90 (liability for February).
b. EI Payable, $509.70 (liability for February).
c. CPP Payable, $857.10 (liability for February).
d. Employees’ Medical Insurance Payable, $1,860.00 (liability for January and February).

During March and April, the company completed the following related to payroll.

Mar. 17 Issued cheque #320 payable to the Receiver General for Canada. The cheque was in payment of the February employee income taxes, EI, and CPP amounts due.
Mar. 31 Prepared a general journal entry to record the March payroll register, which had the following column totals:

EI	Income Taxes	CPP	Medical Insurance	Total Deductions	Net Pay	Office Salaries	Shop Salaries
$183.92	$1,296.90	$454.16	$441.40	$2,376.38	$7,673.62	$3,350.00	$6,700.00

Mar. 31 Recorded the employer’s $441.40 liability for its 50% contribution to the medical insurance plan of employees and 6% vacation pay accrued to the employees.
Mar. 31 Prepared a general journal entry to record the employer’s costs resulting from the March payroll.
Apr. 17 Issued cheque #525 payable to the Receiver General for Canada in payment of the March mandatory deductions.
Apr. 17 Issued cheque #526 payable to All Canadian Insurance Company in payment of the employee medical insurance premiums for the first quarter.

Required:
Prepare the entries to record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places. Do not round intermediate calculations.)

Answer 1

Date	Account Title	Debit	Credit
17-Mar	Employees’ Income Taxes Payable	1296.9
	EI Payable	509.7
	CPP Payable	857.1
	Cash		2663.7
31-Mar	Office Salaries Expense	3350
	Shop Salaries Expense	6700
	EI Payable		183.92
	Income Taxes Payable		1296.9
	CPP		454.16
	Medical Insurance Payable		441.4
	Salaries payable		7673.62
	Employees Medical Insurance expense	441.4
	Benefits expense(6%*10050)	603
	Medical Insurance Payable		441.4
	Vacation pay liability		603
	Salaries payable	7673.62
	Cash		7673.62
17-Apr	EI Payable	183.92
	Income Taxes Payable	1296.9
	CPP	454.16
	Cash		1934.98
	Medical Insurance Payable	2742.8
	Cash		2742.8
	(1860+441.40+441.40)