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Question - Doug Heffernan is a delivery driver for Quick-to-You Delivery, and is paid based on hours worked each week. He earns $880 a week for a 40-hour week, and time and a half (per hour) for anything over 40 hours per week. During that last week of November 2021, Doug worked 46 hours. The income tax withholdings are 20% of gross earnings, Canada Pension Plan deductions are 5.45% of gross earnings, and Employment Insurance deductions are 1.58% of gross earnings. Ignore the basic Canada Pension Plan exemption. Doug was paid for his work from the final week of November the next week on December 4th.
Required -
a) Calculate Doug's gross pay for the last week of November.
b) Prepare journal entries for Quick-to-You Delivery to record the following: (explanations on entries are not required)
i. Accruals related to Doug's payroll required at November 30, 2021.
ii. Payment of the applicable deductions to Revenue Canada (CRA) on December 3, 2021.
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