Reference no: EM132630593

Boat Rentals rents canoes and other water crafts to campers and hikers. On August 15, 2019, Boat Rentals prepared their semi-monthly payroll for their employees. The CPP and EI deduction are provided for you, and the appropriate income tax rate is 16%. The employer pays half of the health care premium, and the employees pay the other half. Vacation pay is 4%. Assume the employer contributes 100% towards the pension plan and 140% towards employment insurance. Overtime pay is paid at 1.5 times any hours over 80 worked during the period.

Payroll information for August 15, 2019 is listed below:

Employee              Total Hours                Hourly Rate                    Health Care

M. Current           79.00                         17.60                            18.00

S. Wavey            77.00                         15.80                             16.00

B. Swift              87.00                          17.20                            16.00

Problem a) Calculate gross and net pay for each employee

Problem b) Calculate the employer contributions

Problem c) Prepare the payroll journal entry to record the payroll entry for the employees. The employee will be paid immediately.

Problem d) Prepare the journal entry to record accrued vacation pay.

Problem e) Prepare the journal entry to record the employer's payroll expense.

Problem f) Prepare the journal entry to record the cash payment for statutory amounts owed to the CRA.

Problem g) Prepare the entry to pay the liability to the health insurance company on August 31, 2019.