Lavender Ltd pays its employees on a fortnightly basis. All employee benefits are recognised as expenses. The following information is provided for its July and August payrolls:
|
|
July
|
|
August
|
|
|
$
|
$
|
|
$
|
$
|
|
Fortnightly payroll
|
|
|
476,000
|
|
|
574,000
|
|
|
|
590,000
|
|
|
492,000
|
|
Gross payroll for the month
|
|
|
1,066,000
|
|
|
1,066,000
|
|
Deductions payable to:
|
|
|
|
|
|
|
|
Taxation authority
|
|
205,000
|
|
|
201,000
|
|
|
Health fund
|
|
16,000
|
|
|
16,000
|
|
|
Community charity
|
|
3,300
|
|
|
3,300
|
|
|
Union fees
|
|
5,300
|
229,600
|
|
5,300
|
225,600
|
|
Total deductions for the month
|
|
|
|
|
|
|
|
Net wages and salaries paid
|
|
|
|
|
|
|
|
14 July, 11 August
|
|
376,195
|
|
|
453,650
|
|
|
28 July, 25 August
|
|
460,205
|
836,400
|
|
386,750
|
840,400
|
|
|
|
1,066,000
|
|
|
1,066,000
|
The two fortnightly payrolls in August were for the fortnight ended Friday, 7 August and Friday, 21 August. The payrolls were processed and paid on the following Monday and Tuesday respectively. Payroll deductions are remitted as follows:
|
Health fund deductions
|
|
3rd day of the following month
|
|
Union fees
|
|
3rd day of the following month
|
|
Taxation authority
|
|
15th day of the following month
|
|
Community charity
|
|
21st day of the following month
|
Prepare all journal entries to account for the August payroll and all payments relating to employee benefits during August. NOTICE: the only accounts you should use for the general journals are: BANK, PAYROLL TAXES EXPENSES, WAGES AND SALARIES EXPENSE, WAGES AND SALARIES PAYABLE, DIRECT LABOUR EXPENSE