Prepare journal entry to record Pina Colada payroll expenses

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Reference no: EM132933829

Question - Pina Colada Inc.'s weekly payroll of $21,000 included employee income taxes withheld of $2,982, Canada Pension Plan (CPP) withheld of $904, and Employment Insurance (EI) withheld of $420. Assume now that the employer is required to match every dollar of the CPP contributions of its employees and to contribute 1.4 times the EI withholdings.

Required -

1. Prepare the journal entry to record Pina Colada's payroll-related expenses.

2. Prepare Pina Colada's entry to record its payroll-related payment to the Receiver General for Canada.

Reference no: EM132933829

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