7252569-MIdterm-1 (dragged) 5

7252569-MIdterm-1 (dragged) 5 - Kieso Weygandt Warfield...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 13-6 b. Compensated absences. c. Bonuses. 21. The following illustrates the concept of accrued liabilities related to payroll deductions. Assume a weekly payroll of $10,000 that is entirely subject to Canada Pension (4.95%) and Employment Insurance (1.8%) deductions. Also, income tax withholding amounts to $1,320, and union dues to $88. Two entries are necessary to record the payroll, the first for the wages paid to employees and the second for the employer's payroll taxes. The two entries are as follows: Wages and Salaries 10,000.00 Employee Income Taxes Payable 1,320.00 CPP Contributions Payable 495.00 EI Premiums Payable 180.00 Union Dues Payable 88.00 Cash 7,917.00 Payroll Tax Expense 747.00 CPP Contributions Payable ($495 x 1.0) 495.00 EI Premiums Payable ($180 x 1.4) 252.00 22. Compensated absences are absences from employment, such as vacation, illness, and holidays, for which it is expected that employees will be paid. In connection with
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This note was uploaded on 03/28/2012 for the course ACCTG ACC423 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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