Question

*Brief Exercise 10-3 Zerbe Consulting Inc.'s gross salaries for the biweekly period ended August 24 were $ 14,400. Deductions included $729 for CPP, $271 for El, and $6,393 for income tax. The employer's payroll costs were $729 for CPP and $379 for EI. Prepare journal entries to record (a) the payment of salaries on August 24; (b) the employer payroll costs on August 24, assuming they will not be remitted to the government until September; and (c) the payment to the government on September 3 of all amounts owed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (b) : (c) Sept. 3 Question Attempts: 0 of 3 used

Answer 1

Answer :

Note : Ignore the explanation line while putting answer in the question format

Journal Entries

Date	Account title and Explanation	Debit	Credit
a.) Aug 24	Salaries and wages Expense	$14,400
	CPP (Canada pension plan) payable		$ 729
	EI (Employment insurance ) payable		$ 271
	Federal income tax withheld payable		$6,393
	Cash (Balance )		$7007
	( To record the payment of payroll)
b). Aug. 24	Payroll Expense (Plug)	$1108
	CPP (Canada pension plan ) payable		$ 729
	EI (Employment insurance ) payable		$ 379
	(To record the employer payroll expense )
c). Sep. 03	CPP (Canada pension plan ) payable (729+729)	$1458
	EI ( Employment insurance ) payable (271+379)	$ 650
	Federal income tax withheld payable	$6393
	Cash		$8501
	(To record the payment of liabilities )

Note : Naming convention of account title can be slightly different.