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Question - Sheffield Corp.'s gross payroll for April is $49,800. The company deducted $2,237 for CPP, $1,058 for EI, and $9,091 for income taxes from the employees' cheques. Employees are paid monthly at the end of each month.
Make a journal entry for Sheffield on April 30 to record the payment of the April payroll to employees.
Make a journal entry on April 30 to accrue Sheffield's employer payroll costs. Assume that Sheffield is assessed workers' compensation premiums at a rate of 1% per month and accrues for vacation pay at a rate of 4% per month.
On May 15, Sheffield pays the Receiver General the correct amounts for April's payroll. Make a journal entry to record this remittance.
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