Question

ASIGNMENT FALL 20 ACC13 Question 7: Payroll Prepare the journal to record payroll for ABC Company for the month of March 2025. Gross Pay is $12,000 (total). The following deductions are made from the employees pay cheques for the month of March. Payroll tax 4 % , Union Dues S600 (total), Contributions to the Red Cross $300 (total) and Pension Contribution 5 % , Debit PR Credit Account Date The company matches Payroll tax, Pension contributions and contributions to the Red Cross Prepare a journal entry to record these obligations. Date Debit PR Credit Account What was net pay for the month of March? 14

Answer 1

Date	Account	PR	Debit	Credit
Mar, 2025	Gross Pay / Salaries and wages expense		12000
	Payroll tax Payable			480	(12000*0.04)
	Union dues Payable			600
	Contribution to Red Cross Payable			300
	Pension contribution payable			600	(12000*0.05)
	Cash			10020
	(To record payroll payment)
Mar, 2025	Employee Payroll expenses		1380
	Payroll tax Payable			480	(12000*0.04)
	Contribution to Red Cross Payable			300
	Pension contribution payable			600	(12000*0.05)
	(To record employee payroll expense)
	Calculation of Net Pay
	Gross Pay		12000
Less:	Payroll tax Payable		480
	Union dues Payable		600
	Contribution to Red Cross Payable		300
	Pension contribution payable		600
	Net pay		10020