question archive Harold Munster earned $2,400 in wages and $650 in sales commissions for the month of November
Harold Munster earned $2,400 in wages and $650 in sales commissions for the month of November
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Harold Munster earned $2,400 in wages and $650 in sales commissions for the month of November. Harold's payroll deductions include income tax of 15 percent, Canada Pension of 4.95 percent on earnings and Employment Insurance of 1.83 percent on earnings. Prepare the journal entries to record the payroll and the payroll taxes imposed on Harold Munster Explanations are not required and ignore the annual exemption for the CPP calculation
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Answer:
Journal entries to record payroll and payroll taxes:
| Date | Particulars | Debit (In $) | Credit (In $) |
| - | Salary Expense A/c Dr ($ 2,400 + $ 650) | $ 3,050 | - |
| To Employee tax withheld (Income tax) payable (15% of 3,050) A/c | - | $ 457.50 | |
| To Employee Insurance payable (1.83% of 3,050) A/c | - | $ 55.82 | |
| To Pension payable (4.95% of 3,050) A/c | - | $ 150.98 | |
| To Salary payable A/c | - | $ 2,385.70 |
| Date | Particulars | Debit (In $) | Credit (In $) |
| - | Employee Benefit expenses A/c | $ 229.13 | - |
| To Pension payable A/c | - | $ 150.98 | |
| To Employee Insurance payable | - | $ 78.15 |
