Question : 1) The entry to record the employer’s contribution for Employment : 1212489

 

 

1) The entry to record the employer’s contribution for Employment Insurance (EI) and Canada Pension Plan (CPP) includes a debit to Employee Benefits Expense.

 

2) The entry to record the salary owed to employees and corresponding deductions includes a debit to salary payable.

 

3) All of the following are payroll costs that are expenses of the employer except:

A) Workers’ Compensation Plan premiums.

B) Employee income taxes.

C) Employment Insurance premiums.

D) Canada Pension Plan contributions.

Table 11-6

 

Peter Tomach works for a manufacturing company. He earns $600 a week for a 40-hour week and time and a half for anything over 40 hours per week. During the first week of the year, Peter worked 49 hours. The income tax withholdings are 15% of gross earnings. Canada Pension Plan deductions are 4.95% of gross earnings and Employment Insurance deductions are 1.83% of gross earnings. Ignore the basic Canada Pension Plan exemption.

 

4) Referring to Table 11-6. The entry to record salary expense includes a:

A) debit to Salary Payable to Employees.

B) debit to Employee Income Tax Expense.

C) credit to Employee Income Tax Payable.

D) credit to Employee Benefits Expense.

 

5) Referring to Table 11-6. The entry to record the employer’s portion of Canada Pension Plan expense includes a:

A) credit to Salary Payable to Employees.

B) credit to Employee Benefits Expense.

C) debit to Salary Expense.

D) credit to Canada Pension Plan Payable.

 

6) Referring to Table 11-6, the entry to record the payroll for Peter would include a:

A) debit to Salary Payable to Employees for $802.50.

B) credit to Employee Income Tax Payable for $120.38.

C) credit to Canada Pension Plan Payable for $15.01.

D) credit to Employee Benefits Expense for $54.73.

7) Referring to Table 11-6, the entry to record the payroll costs imposed on the employer would include a:

A) debit to Canada Pension Plan Expense of $39.72.

B) credit to Employee Income Tax Payable for $120.38.

C) debit to Salary Expense for $600.

D) credit to Employment Insurance Payable for $15.01.

 

Table 11-7

 

Camparound Canada has 24 employees who are paid on a monthly basis. For the most recent month, gross earnings were $68,000. The income tax withholdings are 15% of gross earnings. Canada Pension Plan deductions are 4.95% of gross earnings and Employment Insurance deductions are 1.83% of gross earnings. All employees have $15 per month withheld for charitable contributions. Ignore the basic Canada Pension Plan exemption.

 

8) Referring to Table 11-7, the entry to record salary expense includes a:

A) credit to Salary Expense for $68,000.00.

B) debit to Employment Insurance Payable for $1,742.16.

C) debit to Employee Income Tax Payable for $10,200.00.

D) credit to Canada Pension Plan Payable for $3,366.00.

 

9) Referring to Table 11-7, the entry to record the employer’s payroll costs includes a:

A) debit to Payroll Tax Payable for $14,484.

B) credit to Employee Income Tax Payable for $10,200.

C) debit to Canada Pension Plan Expense for $3,366.

D) credit to Canada Pension Plan Expense for $3,366.

Table 11-15

 

Sally Lee works for a tugboat company. She earns $900 a week for a 40-hour week and time and a half for anything over 40 hours per week. During the first week of the year, Sally worked 43 hours. The income tax withholdings are 20% of gross earnings. Canada Pension Plan deductions are 4.95% of gross earnings and Employment Insurance deductions are 1.83% of gross earnings. The worker’s compensation premium is 1.6% of gross earnings. Ignore the basic Canada Pension Plan exemption.

 

10) Refer to Table 11-15. What is the correct journal entry to record the salary expense?

A)

Salary expense – regular

900.00

 

            Income tax payable

 

180.00

            CPP payable

 

44.55

            EI payable

 

16.47

            Cash

 

658.98

Salary expense – overtime

101.25

 

            Cash

 

101.25

 

B)

Salary expense

1,001.25

 

            Income tax payable

 

200.25

            CPP payable

 

49.56

            EI payable

 

18.32

            Cash

 

733.12

 

C)

Salary expense

1,001.25

 

            Income tax payable

 

200.25

            CPP payable

 

49.56

            EI payable

 

18.32

            Worker’s compensation payable

 

16.02

            Cash

 

717.10

 

D)

Salary expense

1,001.25

 

            Income tax payable

 

200.25

            CPP payable

 

49.56

            EI payable

 

25.65

            Cash

 

  728.79