A company's sales personnel earned salaries of $15,000 during the pay periodDecember 5-10, all of which were subject to 1.88% EI withholdings. All employees had reached the annual maximum earnings for the Canada Pension Plan. In addition, thecompany has agreed with its employees to withhold the following amounts: $900 forhospital insurance, $2,600 for federal and provincial income taxes, and $180 for union dues. Calculate the general journal entry credit amount on December 10 to "SalariesPayable."

Question

Quizplus · Accepted Answer

First, we need to calculate the amount of EI withholdings:

$15,000 x 1.88% = $282

Next, we need to subtract the total withholdings from the gross pay:

$15,000 - $900 - $2,600 - $180 - $282 = $10,038

Therefore, the credit to Salaries Payable account would be $10,038.

A Company's Sales Personnel Earned Salaries of $15,000 During the Pay