1. Sheffield Enterprises’ payroll for the month of March, 2020 is shown below.
Salaries and Wages for the month of March 2020 | $ | 214,000 | |
Income Taxes withheld from employees | 47,372 | ||
EI withheld from employees | 1.66% | ||
CPP withheld from employees | 4.95% | ||
Union dues withheld from employees | 20,914 |
Prepare the journal entries for the employee and employer portion
related to payroll costs. Also, prepare the journal entries to
record the remittance of the March payroll deductions to the
Receiver General for Canada and to the union. (Hint: The employer's
CPP share is the same as the employee's share, and the employer's
EI share is 1.4 times that of the employee.) (Round
answer to 0 decimal places, e.g. 5,275. Credit account titles are
automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts.)
Account Titles and Explanation |
Debit |
Credit |
(To record the salaries and wages paid and the employee payroll deductions) |
||
(To record employer contributions) | ||
(To record remittance) |
||
(To record remittance) |
List of Accounts
2. On April 1, 2020, Martinez Inc. signed a $116,400, 8%, six month promissory note. The company’s year-end was July 31.
Prepare the journal entry on the books of Martinez Inc. to record the issue of the note. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
Apr. 1, 2020 |
|||
On April 1, 2020, Martinez Inc. signed a $116,400, 8%, six month promissory note. The company’s year-end was July 31.
Prepare the journal entry on the books of Martinez Inc. to record the issue of the note. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
Apr. 1, 2020 |
|||
Prepare the journal entry on the books of Martinez Inc. to record the year-end interest accrual. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
July 31, 2020 |
|||
. Prepare the journal entry on the books of Martinez Inc. to record repayment of the note on September 30, 2020. Martinez does not use reversing entries. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
Sept. 30, 2020 |
|||
List of Accounts
1 | Account and Explanation | Debit | Credit |
Salaries and Wages Expense | 214,000 | ||
CPP Contributions Payable (214,000 x 1.66%) | 10,593 | ||
EI Premiums Payable (214,000 x 1.66%) | 3,552 | ||
Employee Income Tax Deductions Payable | 47,372 | ||
Union Dues Payable | 20,914 | ||
Salaries and Wages Payable | 131,569 | ||
Payroll Tax Expense | 15,566 | ||
CPP Contributions Payable | 10,593 | ||
EI Premiums Payable | 4,973 | ||
Employee Income Tax Deductions Payable | 47,372 | ||
CPP Contributions Payable | 21,186 | ||
EI Premiums Payable | 8,526 | ||
Cash | 77,084 | ||
Salaries and Wages Payable | 131,569 | ||
Cash | 131,569 | ||
2 | |||
Date | Account and Explanation | Debit | Credit |
Apr. 1 | Cash | 116,400 | |
Notes Payable | 116,400 | ||
July 31 | Interest Expense | 3,104 | |
Interest Payable | 3,104 | ||
(116,400 x 8% x 4/12) | |||
Sep 30 | Notes Payable | 116,400 | |
Interest Expense (116,400 x 8% x 2/12) | 1,552 | ||
Interest Payable | 3,104 | ||
Cash | 121,056 | ||
1. Sheffield Enterprises’ payroll for the month of March, 2020 is shown below. Salaries and Wages...
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