question archive The following is the journal entry for Monopoly Corporation’s bi-weekly payroll for the period ended May 22, 2015
The following is the journal entry for Monopoly Corporation’s bi-weekly payroll for the period ended May 22, 2015
Subject:FinancePrice: Bought3
The following is the journal
entry for Monopoly Corporation’s bi-weekly payroll for the period ended May 22,
2015.
Salary Expense
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Income Tax Payable
8,200
CPP Contributions Payable
1,600
EI Premiums Payable
1,450
Union Dues Payable
920
Life
Insurance Premium Payable
160
Salary Payable
69,340
In addition to the
mandatory statutory benefits, Monopoly also pays 100% of medical insurance at a
rate of 3.45% of gross payroll.
a)
Record the employer portion of payroll related
expenses for May 22nd:
b)
Recordthe entries for allcash payments resulting
from the May 22 payroll:
c)
Monopoly awards vacation on the basis of 4% of salary.
The company anticipates a 1.5% increase in pay rates for 2016. Prepare the adjusting
journal entry for vacation related to the May 22 payroll, assuming vacation
days earned in any year are only available to be used in the subsequent year:
d)
One employee, Sara White, has applied for parental
leave, which will begin May 25th. Her annual salary is $62,400.
Employment Insurance will pay her $480 per week for the next 52 weeks, and
Monopoly will top up the amount to provide 90% of her salary. Prepare the entry
related to the parental benefits plan:
e)
Prepare the entry on June 5th, the
following (bi-weekly) payroll period, for Sara White’s parental leave pay:
f)
Assume vacation taken, and paid out, on June 5th
(the following payroll period end) amounts to $4,867. The vacation accrual was
made during 2014 at an assumed salary increase (for 2015) of 1.5%. However, the
union successfully negotiated an increase of 1.75% for 2015 salaries. The
vacation accrual was not adjusted for the negotiated actual increase. Prepare
the journal entry for the vacation pay, ignoring all payroll related
deductions:
