Chapter 4
Current Liabilities
189
AP-3B (
3
)
Jeab Ja Company has calculated the following amounts for the company’s office manager,
Ricky Marten, during the last week of January 2016.
Gross Pay
$1,800
Income Taxes
445
Canada Pension Plan
86
Employment Insurance
34
Required
a) Calculate Ricky Marten’s net pay.
b) Assuming the employer’s contribution is 100% for Canada Pension Plan and 140% for
Employment Insurance, what is the employer’s portion of CPP and EI?
c) Prepare the journal entries to record payroll for Ricky Marten and record Jeab Ja’s
employer expenses. Assume the employee will not be paid until February 1.
Date
Account Title and Explanation
Debit
Credit
