Calculate Gross Pay to Sally Lee for last week of January

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Question - Sally Lee works for a tugboat company and is paid weekly. She earns $900 a week for a 40- hour week and time and a half for anything over 40 hours per week. During that last week of January 2021, Sally worked 43 hours. The income tax withholdings are 20% of gross earnings. Canada Pension Plan deductions are 4.95% of gross earnings and Employment Insurance deductions are 1.88% of gross earnings. Ignore the basic Canada Pension Plan exemption. Sally was paid for the last week of January the following week on Feb 4th.

a) Calculate Gross Pay to Sally Lee for the last week of January.

b) Prepare journal entries to record the following:

i. Accrual of Sally Lee's payroll at January 31.

ii. Accrual of employer payroll costs at January 31.

iii. Payment of the applicable deductions to Revenue Canada on February 3, 2021.

Reference no: EM132811512

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