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Problem - Haines, Inc. prepared the following payroll summary for the current month:
Administrative salaries $10,000
Sales salaries 15,000
Shop wages 21,000
Employee deductions Federal income taxes withheld 11,500
Hospital insurance premiums 1,430
Union dues 1,190
Canada Pension Plan is 4.95 percent of the pensionable earnings with an annual exemption of $3,500 for each employee. Employment Insurance is 1.78 percent of the insurable earnings. None of the current month's salaries and wages exceed the CPP or EI limits. Haines makes a pension contribution equal to 9% of each employee's gross earnings. A vacation pay accrual is also made at 3.6% of the gross earnings. Haines has 10 employees.
Prepare the journal entries to record: (A) The month's payroll accrual. (B) The month's employer payroll taxes. (C) The employer's pension contribution and vacation pay accrual.
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