Reference no: EM133412675

Case: Yorke Medical Instruments Ltd has six employees who are paid on the 1st and 16th of each month for the work they performed in the preceding half-month (paid semi-monthly; for instance, Jan 1-15 work is paid Jan 16; and Jan 16-31 work is paid Feb 1). For the pay period February 16 to February 28, 2023, each employee is owed gross pay as follows:

Job Position. # employees Gross pay details (for Feb 16 - 28)
Production engineer 1 $ 1,700 per semi-monthly period
Sales manager 1 $ 1,300 per semi-monthly period
Office clerk 1 87 hours @ $17 per hour
Production workers 3 $1,050 per semi-monthly period

Each employee must have 19% of their gross pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.95% of their gross pay and pay Employment Insurance premiums of 1.63% of their gross pay. Each employee has $21 of union dues deducted from their paycheque. The office clerk also voluntarily chooses to have $40 per paycheque deducted and donated to the United Way charitable organization.

1. Calculate the gross pay, deductions, and net pay for the Office Clerk (just this one employee).
2. Calculate the total gross pay owing to all employees for the pay period February 16 - 28.
3. Assemble the payroll general journal entries required to reflect these amounts for the pay period
February 16 - 28, along with Yorke's share of CPP contributions and EI premiums, in Yorke's
February 28 financial statements. Recall that both employers and employees make contributions
to CPP and EI.
[Hint: There should be two separate summary journal entries, one for the recording of the payroll
for all employee costs, and the second for the company's costs/contributions)
4. Show what Yorke would report on its balance sheet at February 28 before the payments are made.
[Hint: Assemble a partial balance sheet showing only the current liabilities section for all of the accounts used in the above transactions.]
5. Show what Yorke would report on the income statement for the month ended February 28.
[Hint: Assemble ta partial income statement for all the revenue/expense accounts used in the above
transactions. Ignore the revenue/expense amounts for the payroll period Feb 1 - 15, as that information has not been provided.]
6. Assemble the payroll general journal entries required to reflect:
(i) the payment of the February 16-28 payroll liabilities to the Canada Revenue Agency (CRA) on March 10, and
(ii) the payment of the union dues to Unifor Union Local #123 on March 12, and
(iii) the payment of the charitable donations to the United Way on March 13.
(Round all calculations for dollar amounts to the nearest penny.