Question - A summary of labor costs and associated deductions for the month of July follows:
|
|
Gross
|
PAYG Tax
|
Super
|
Medical Fund
|
|
Direct labour
|
40,000
|
12,000
|
2,000
|
200
|
|
Indirect labour
|
8,000
|
2,400
|
400
|
40
|
|
|
48,000
|
14,400
|
2,400
|
240
|
|
Sales salaries
|
17,200
|
5,160
|
860
|
120
|
|
|
65,200
|
19,560
|
3,260
|
360
|
Required:
a) Prepare general journal entry to distribute the Payroll Cost.
b) Prepare general journal entry to record the Payroll Liability.