Carla Vista Ventures Ltd. had the following transactions:
Oct. 31
Recorded wages earned by the employees during the month, which amounted to $25,800. The source deductions on
these wages were CPP of $1,406, EI of $410, and income taxes of $3,956. Also recorded the employer's portion of CPP
and EI.
Nov. 2
Paid the wages recorded on October 31.
Nov. 15
Made the remittance to the government related to the October 31 payroll.
(a)
(b)
Your answer is partially correct.
Prepare the journal entries necessary to record these transactions. (Record journal entries in the order presented in the problem.
Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Date
Account and explanation
Debit
Credit
Oct. 31
Wages Expense
25,800
CPP Payable
1,406
EI Payable
410
Employee Income Taxes Payable
3,956
Wages Payable
20,028
(To record wages payable to employees)
Oct. 31
Wages Expense
1,816
CPP Payable
1,406
EI Payable
410
(To record employer's liabilities)
Nov. 2
Wages Payable
20,028
Cash
20,028
Nov. 15
Employee Income Taxes Payable
3,956
CPP Payable
2,812
EI Payable
820
Cash
7,588
