Goofy Productions Limited had gross wages owing to their employees of $8,400 on March 31, 2022. Employees pay 2% of their gross salaries to the government employment insurance plan and 4% of gross salaries to the government pension plan. The income tax payable on the wages owing at March 31, 2022 is $1,700. The company matches employees' government pension contributions 1 to 1, and employment insurance contributions 1.4 to 1. Required: 1. Calculate the deductions and net pay owing to Goofy's employees on March 31, 2022. 2. Calculate the employer's portion of employment insurance and government pension plan owing at March 31, 2022. 3. Prepare the journal entry to record the payment to the Government of Canada on April 10 for the amounts owing from the March 31 payroll.
Goofy Productions Limited had gross wages owing to their employees of $8,400 on March 31, 2022. Employees pay 2% of their gross salaries to the government employment insurance plan and 4% of gross salaries to the government pension plan. The income tax payable on the wages owing at March 31, 2022 is $1,700. The company matches employees' government pension contributions 1 to 1, and employment insurance contributions 1.4 to 1. Required: 1. Calculate the deductions and net pay owing to Goofy's employees on March 31, 2022. 2. Calculate the employer's portion of employment insurance and government pension plan owing at March 31, 2022. 3. Prepare the journal entry to record the payment to the Government of Canada on April 10 for the amounts owing from the March 31 payroll.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 2PB
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Transcribed Image Text:Goofy Productions Limited had gross wages owing to their employees of $8,400 on
March 31, 2022. Employees pay 2% of their gross salaries to the government
employment insurance plan and 4% of gross salaries to the government pension plan. The
income tax payable on the wages owing at March 31, 2022 is $1,700. The company
matches employees' government pension contributions 1 to 1, and employment insurance
contributions 1.4 to 1.
Required:
1. Calculate the deductions and net pay owing to Goofy's employees on March 31,
2022.
2. Calculate the employer's portion of employment insurance and government
pension plan owing at March 31, 2022.
3. Prepare the journal entry to record the payment to the Government of Canada on
April 10 for the amounts owing from the March 31 payroll.
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