The following is thejournal entry for Monopoly Corporation's bi-weekly payroll for the period ended May 22, 2015.
| Salary Expense |
81,670 |
|
| Income Tax Payable |
8,200 |
| CPP Contributions Payable |
1,600 |
| EI Premiums Payable |
1,450 |
| Union Dues Payable |
920 |
| Life Insurance Premium Payable |
160 |
| Salary Payable |
69,340 |
In addition to the mandatory statutory benefits, Monopoly also pays 100% of medical insurance at a rate of 3.45% of gross payroll.
a) Record the employer portion of payroll related expenses for May 22nd:
b) Record the entries for allcash payments resulting from the May 22 payroll:
c) Monopoly awards vacation on the basis of 4% of salary. The company anticipates a 1.5% increase in pay rates for 2016.Prepare the adjusting journal entry for vacation related to the May 22 payroll, assuming vacation days earned in any year are only available to be used in the subsequent year:
d) One employee, Sara White, has applied for parental leave, which will begin May 25th. Her annual salary is $62,400. Employment Insurance will pay her $480 per week for the next 52 weeks, and Monopoly will top up the amount to provide 90% of her salary. Prepare the entry related to the parental benefits plan:
e) Prepare the entry on June 5th, the following (bi-weekly) payroll period, for Sara White's parental leave pay:
f) Assume vacation taken, and paid out, on June 5th (the following payroll period end) amounts to $4,867. The vacation accrual was made during 2014 at an assumed salary increase (for 2015) of 1.5%. However, the union successfully negotiated an increase of 1.75% for 2015 salaries. The vacation accrual was not adjusted for the negotiated actual increase. Prepare the journal entry for the vacation pay, ignoring all payroll related deductions.