: The payroll of Box Plot Inc. for January 2020 is as follows. Total payroll...
90.2K
Verified Solution
Link Copied!
Question
Finance
: The payroll of Box Plot Inc. for January 2020 is as follows. Total payroll was $485,000. Pensionable (CPP) and insurable (EI) earnings were $365,000. Income taxes in the amount of $85,000 were withheld, as were $8,000 in union dues. The EI tax rate was 1.60% for employees and 2.24% for employers, and the CPP rate was 4.80% for employees and 4.80% for employers.
a. Prepare the necessary journal entries to record the payroll if the salaries and wages paid and the employer payroll taxes are recorded separately. [2 Marks]
b. Prepare the entries to record the payment of all required amounts to the Receiver General. [2 Mark]
c. For every dollar of salaries and wages that Box Plot commits to pay, what is the actual payroll cost to the company?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
