Ann is an employee of nike she is paid her monthly salary of...

Ann is an employee of Nike. She is paid her monthly salary of $10,000 on December 31, 2023. Personal income taxes are deducted and withheld by the employer amounting to $4,000. Canada Pension Plan (CPP) deductions of $495, union dues of $20, employment insurance premiums (EI) of $130, and private health insurance premiums of $100 are also deducted. Nike is required to contribute the following amounts to the applicable agency by January 15 of the next year: CPP: 100% of employee deductions EI: 140% of employee deductions Private health insurance: 200% of employee deductions Post-retirement benefits: $1,000 Required: 1. Prepare a transactions worksheet to record the events on December 31 and January 15. 2. Calculate the amount of compensation expense that would be reported on Nike's 2023 income statement. 3. Calculate Nike's cash outflow on January 15, 2024.

Transcript

00:01 So, here in a question we have to assess mary jonas in calculating her payroll for four night of january 10 to 23, 2016.

00:16 So, let's start with calculations at part a we need to find the gross pay for her basic salary.

00:25 We have to given and for night gross pay pay is we use short form here for nice gross pay is basic salary.

00:36 Divided by 26 that is number of for night in year.

00:40 So, let's calculate it basic salary is 247 0 0 0 0 divided by 26.

00:50 So, we got the amount $95 ,000.

00:54 So, this is her gross pay when we calculate also the for night additional allowances.

01:03 So, here we need to put the values for the taxable meal allowance that is $10 ,000 plus non taxable uniform and laundry allowance, which is $10 ,500 multiplied by 2.

01:23 So, here we got $42 ,000.

01:28 So, this is the two things now the total gross pay total gross pay for her is $95 ,000 plus $42 ,000.

01:44 So, it will be $1 ,37 ,000 for her.

01:51 Now, let's calculate her statutory income at part b statutory income.

01:59 So, it is the income used to calculate certain deductions.

02:03 So, in this we need to put the for night gross gross pay, which is $95 ,000 plus for night additional allowances, which is $42 ,000.

02:17 So, it will be also $1 ,37 ,000.

02:23 Now, let's move towards the next thing for calculation, which is taxable income at part c.

02:31 We need to calculate her taxable income.

02:35 So, it is the income on which income tax is calculated after deducting personal deductions.

02:41 So, what is her personal deductions credit union? we have to given when we calculate so credit union we use short forms here 4 ,16 ,000 annually divided by 26, which is a number of four nights in the year.

02:59 So, it will be $16 ,000 per for night per for night.

03:06 Now insurance when we calculate insurance, so this will be $78 ,000 divided by 26.

03:15 So, this is 3 ,000 per for night.

03:22 Now car loan here 7500 per week multiply by 2 for night.

03:32 So, it will be $15 ,000.

03:39 Now, total personal deductions.

03:42 We do this.

03:43 So, here total personal deductions, how we can calculate $16 ,000 plus $3 ,000 plus $15 ,000.

03:59 So, here it is $34 ,000.

04:03 Now, we need to calculate the taxable income.

04:07 So, here the statutory income, which is one lakh, thirty seven thousand dollar week calculate previously minus total personal deductions.

04:15 That is $34 ,000.

04:18 So, we get it one lakh three thousand dollar taxable income.

04:24 Now, at the d part, we need to calculate her net pay.

04:30 So, net pay how we can calculate it income tax.

04:36 First, we need to calculate for this.

04:42 So, income tax is equals to taxable income, which is one lakh three thousand dollar multiply by employees income tax rate, which is given 25 % in a question.

04:55 So, it will be $25 ,750...

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