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Question 3

Assiniboine Company has threeemployees who each earn $3,000 (monthly) and are paid on the2^nd of each month (for the month just ended). Thefollowing payroll register for March (of the current year) has beenprepared. Explanations are optional.

							Distribution
Gross		Income		Medical	Total		Office	Sales
Pay	EI	Tax	CPP	Insurance	Deductions	Net Pay	Salaries	Salaries
$9,000	$190	$1,900	$400	$350	$2,840	$6,160	$3,000	$6,000

REQUIRED: Using thepartial Chart of Accounts at the top of the next page,

1. Prepare the regular payroll journal entry on March31^st to accrue the payroll for the month.

2. Prepare the journal entry to accrue the company’s costs(contributions) resulting from the previous entry.

3. Assiniboine matches the employee’s contribution to the medicalinsurance plan and accrues vacation pay at 4%. Prepare a journalentry to accrue these fringe benefits.

Journalize the following threecheques:

4. On April 3^nd, a cheque was issued to pay theemployees.

5. On April 15^th, a cheque was issued, payable to theReceiver General, to pay for March’s mandatory deductions.

6. A cheque was issued on April 21^st to ABC Insurancein payment of the employee medical premiums for the month ofMarch.

Date

Account Titles and Explanation

PR

Debit

Credit

(a)

(b)

(c)

(d)

(e)

(f)

Partial Chart of Accounts:

Cash

CPP Payable

EI Payable

Employees’ Income Tax Payable

Estimated Vacation Pay Liability

Medical Insurance Payable

Salaries Payable

Benefits Expense

CPP Expense

EI Expense

Office Salaries Expense

Sales Salaries Expense