Student responses may vary considerably. Instructional Note: P 11-3A Req. 1 (solving for missing payroll amounts) (20-30 min.) Employee Earnings: Regular employee earnings $19,947 Overtime pay 5,595 a Total employee earnings 25,542 b Deductions and Net Pay: Withheld income tax 6,379 Canada Pension Plan 549 c Employment Insurance 478 Medical Insurance 541 Total deductions 7,947 Net pay 17,595 Accounts Debited: Salaries Expense 16,923 d Wages Expense 6,938 Sales Commission Expense 1,681 Computations (in order of calculation): b. Total employee earnings: Total deductions ($7,947) + Net pay ($17,595) = Total employee earnings ($25,542) a. Overtime pay: Total employee earnings ($25,542) Regular employee earnings ($19,947) = Overtime pay – ($5,595) c. Pension Plan: Total deductions ($7,947) Withheld income tax ($6,379) Employment Insurance ($478) – – Medical Insurance ($541) = Canada Pension Plan ($549) – d. Salary Expense: Total employee earnings ($25,542) Wages expense ($6,938) Sales commission expense – – ($1,681) = Salaries expense ($16,923)
Instructional Note: Student responses may vary considerably. Req. 1 (solving for missing payroll amounts) (20-30 min.) P 11-3A Employee Earnings: Regular employee earnings $19,947 Overtime pay 5,595 a Total employee earnings 25,542 b Deductions and Net Pay: Withheld income tax 6,379 Canada Pension Plan 549 c Employment Insurance 478 Medical Insurance 541 Total deductions 7,947 Net pay 17,595 Accounts Debited: Salaries Expense 16,923 d Wages Expense 6,938 Sales Commission Expense 1,681 Computations (in order of calculation): b. Total employee earnings: Total deductions ($7,947) + Net pay ($17,595) = Total employee earnings ($25,542) a. Overtime pay: Total employee earnings ($25,542) – Regular employee earnings ($19,947) = Overtime pay ($5,595) c. Pension Plan: Total deductions ($7,947) – Withheld income tax ($6,379) – Employment Insurance ($478) – Medical Insurance ($541) = Canada Pension Plan ($549) d. Salary Expense: Total employee earnings ($25,542) – Wages expense ($6,938) – Sales commission expense ($1,681) = Salaries expense ($16,923)
Accounting-9th-Canadian-Edition-Volume-2-Solution.docx