Chapter 11
Payroll
336
The journal entry to be prepared from the payroll register is shown in Figure 11.10.
CPP PAYABLE
EI PAYABLE
INCOME TAXES PAYABLE
UNION DUES PAYABLE
HEALTH INSURANCE PAYABLE
SALARIES PAYABLE
-
-
-
-
-
-
+
+
+
+
+
+
630.04
261.23
2,063.60
200
60
10,679.98
Journal Page 1
Date
2015
account title and explanation Debit
credit
Jan 31 Salaries Expense
13,894.85
CPP Payable
630.04
EI Payable
261.23
Income Taxes Payable
2,063.60
Union Dues Payable
200.00
Health Insurance Payable
60.00
Salaries Payable
10,679.98
To record employee payroll
______________
FIGURE 11.10
Vacation pay is accrued on the total gross pay for all the employees at 4%. The journal entry is
shown in Figure 11.11.
Journal Page 1
Date
2015
account title and explanation Debit credit
Jan 31 Vacation Pay Expense
555.79
Vacation Pay Payable
555.79
To accrue vacation pay
VACATION PAY PAYABLE
-
+
555.79
______________
FIGURE 11.11
The business also must pay its own payroll contributions relating to the employees. Recall that the
business will match 100% of the CPP deductions and pay 140% of the EI deductions.The business
also pays $15 per employee for health insurance and must pay 0.5% of gross pay for workers’
compensation.
