Question

Tobin’s gross payroll for the week ending May 16th was $4,000. The company deducted $207 for CPP, $64 for EI, and $1310 for income tax from the employees’ pay. Chen’s payroll costs for the week were $207 for CPP and $90 for EI.

Chen paid payroll on May 30th. On May 31, Chen remitted payroll (source) deductions to CRA.

Required

Prepare the journal entries to record the above transactions. Explanations are not required.

Answer 1

Solution:
Journal Entries
Date	Account titles & explanations	Debit	Credit
May , 16	Salary and wages expenses	$4,000
	CPP Payable		$207
	EI Payable		$64
	Income tax withheld payable		$1,310
	Salary and wages payable		$2,419
May , 16	Employee Payroll expenses	$297
	CPP Payable		$207
	EI Payable		$90
May , 30	Salary and wages payable	$2,419
	Cash		$2,419
May , 31	CPP Payable	$414
	EI Payable	$154
	Income Tax withheld payable	$1,310
	Cash		$1,878