Yorke Medical Instruments Ltd has six employees who are paid on the 1st and 16th of each month for the work they performed in the preceding half-month (paid semi-monthly; for instance, Jan 1-15 work is paid Jan 16; and Jan 16-31 work is paid Feb 1). For the pay period February 16 to February 28, 2023, each employee is owed gross pay as follows: Job Position # employees Gross pay details (for Feb 16 – 28) Production engineer 1 $ 1,700 per semi-monthly period Sales manager 1 $ 1,300 per semi-monthly period Office clerk 1 87 hours @ $17 per hour Production workers 3 $1,050 per semi-monthly period Each employee must have 19% of their gross pay withheld for income taxes. Each must also make Canada Pension Plan contributions of 5.95% of their gross pay and pay Employment Insurance premiums of 1.63% of their gross pay. Each employee has $21 of union dues deducted from their paycheque. The office clerk also voluntarily chooses to have $40 per paycheque deducted and donated to the United Way charitable organization. Requirements: 1. Calculate the gross pay, deductions, and net pay for the Office Clerk (just this one employee). 2. Calculate the total gross pay owing to all employees for the pay period February 16 – 28. 3. Prepare the payroll general journal entries required to reflect these amounts for the pay period February 16 – 28, along with Yorke’s share of CPP contributions and EI premiums, in Yorke’s February 28 financial statements. Recall that both employers and employees make contributions to CPP and EI. Refer to your textbook for more details about whether, and how much, the company has to match regarding specified payroll deduction/contributions. [Hint: There should be two separate summary journal entries, one for the recording of the payroll for all employee costs, and the second for the company’s costs/contributions, as shown in the textbook and lecture slides.)] 4. Show what Yorke would report on its balance sheet at February 28 before the payments are made. [Hint: Prepare a partial balance sheet showing only the current liabilities section for all of the accounts used in the above transactions.] 5. Show what Yorke would report on income statement for the month ended February 28. [Hint: Prepare a partial income statement for all the revenue/expense accounts used in the above transactions. Ignore the revenue/expense amounts for the payroll period Feb 1 – 15, as that information has not been provided.] 6. Prepare the payroll general journal entries required to reflect: (i) the payment of the February 16-28 payroll liabilities to the Canada Revenue Agency (CRA) on March 10, and (ii) the payment of the union dues to Unifor Union Local #123 on March 12, and (iii) the payment of the charitable donations to the United Way on March 13. (Round all calculations for dollar amounts to the nearest penny.)
Yorke Medical Instruments Ltd has six employees who are paid on the 1st and 16th of each month for
the work they performed in the preceding half-month (paid semi-monthly; for instance, Jan 1-15 work is
paid Jan 16; and Jan 16-31 work is paid Feb 1). For the pay period February 16 to February 28, 2023,
each employee is owed gross pay as follows:
Job Position # employees Gross pay details (for Feb 16 – 28)
Production engineer 1 $ 1,700 per semi-monthly period
Sales manager 1 $ 1,300 per semi-monthly period
Office clerk 1 87 hours @ $17 per hour
Production workers 3 $1,050 per semi-monthly period
Each employee must have 19% of their gross pay withheld for income taxes. Each must also make
Canada Pension Plan contributions of 5.95% of their gross pay and pay Employment Insurance premiums
of 1.63% of their gross pay. Each employee has $21 of union dues deducted from their paycheque. The
office clerk also voluntarily chooses to have $40 per paycheque deducted and donated to the United
Way charitable organization.
Requirements:
1. Calculate the gross pay, deductions, and net pay for the Office Clerk (just this one employee).
2. Calculate the total gross pay owing to all employees for the pay period February 16 – 28.
3. Prepare the payroll general
February 16 – 28, along with Yorke’s share of CPP contributions and EI premiums, in Yorke’s
February 28 financial statements. Recall that both employers and employees make contributions
to CPP and EI. Refer to your textbook for more details about whether, and how much, the
company has to match regarding specified payroll deduction/contributions.
[Hint: There should be two separate summary journal entries, one for the recording of the payroll
for all employee costs, and the second for the company’s costs/contributions, as shown in the
textbook and lecture slides.)]
4. Show what Yorke would report on its balance sheet at February 28 before the payments are
made.
[Hint: Prepare a partial balance sheet showing only the current liabilities section for all of the
accounts used in the above transactions.]
5. Show what Yorke would report on income statement for the month ended February 28.
[Hint: Prepare a partial income statement for all the revenue/expense accounts used in the above
transactions. Ignore the revenue/expense amounts for the payroll period Feb 1 – 15, as that
information has not been provided.]
6. Prepare the payroll general journal entries required to reflect:
(i) the payment of the February 16-28 payroll liabilities to the Canada Revenue Agency (CRA) on
March 10, and
(ii) the payment of the union dues to Unifor Union Local #123 on March 12, and
(iii) the payment of the charitable donations to the United Way on March 13.
(Round all calculations for dollar amounts to the nearest penny.)
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