Reference no: EM132601850

During 2018, she worked for the company all year at a $7,200 monthly salary. She also earned a year-end bonus equal to 20 percent of her salary. Wu's monthly income tax withholding for 2018 was $1,785.00. Also, she paid a one-time federal withholding tax of $4,010.00 on her bonus cheque.

Assume that Joyce Wu is a marketing director in Continental Mobility's head office in Ottawa.

Question 1. Compute Wu's gross pay, payroll deductions, and net pay for the full year 2018.

Question 2. Compute Continental Mobility's total 2018 payroll cost for Wu.

Question 3. Prepare Continental Mobility's summary general journal entries at August 31?(explanations are not required) to record its expense for the? following:

a. Wu's total earnings for the year, her payroll deductions, and her net pay. Debit Salary Expense and Executive Bonus Compensation as appropriate. Credit liability accounts for payroll deductions and Cash for net pay.

b. Employer payroll expenses for Wu. Credit the appropriate liability accounts.

c. Benefits provided to Wu. Credit Health Insurance Payable and Company Pension Payable.