Paradise Hills Berry Farm has 27 employees who are paid biweekly. The payroll register showed the following payroll deductions for the pay period ending March 23, 2021. Gross Pay EI Premium Income Taxes CPP Medical Ins. United Way84,950.00 1,410.17 11,717.00 4,025.11 1,625.00 1,794.00Required:Prepare a journal entry to record payment by the employer to the Receiver General for Canada on April 15. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Question
Paradise Hills Berry Farm has 27 employees who are paid biweekly. The payroll register showed the following payroll deductions for the pay period ending March 23, 2021. Gross Pay EI Premium Income Taxes CPP Medical Ins. United Way84,950.00 1,410.17 11,717.00 4,025.11 1,625.00 1,794.00Required:Prepare a journal entry to record payment by the employer to the Receiver General for Canada on April 15. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Solution
The journal entry to record the payment by the employer to the Receiver General for Canada on April 15 would be as follows:
Debit: EI Expense: 11,717.00 CPP Expense: $4,025.11
Credit: Cash: $17,152.28
This journal entry records the payment of the employer's payroll deductions to the Receiver General for Canada. The debits increase the expense accounts for EI, income tax, and CPP, and the credit decreases the cash account by the total amount of the deductions.
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