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Question - A & K audio has 5 sales employees, each of whom earns $3,000 per month and is paid the last working day of the month. Canada Pension Plan is 4.95 percent of the pensionable earnings and Employment Insurance is 1.78 percent of the insurable earnings. Withholdings for each employee also include federal income tax of 15% and medical insurance premiums of $110.
Required -
1. Present a general journal entry to accrue the payroll on March 31, 2021.
2. Calculate the employer portion of CPP and EI (Journal Entry).
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