Assignment 4A: Stratford House
Stratford House
is a non-profit organization that operates an emergency shelter for women and their children
in Vancouver.
Stratford House
earns fee income by providing presentations and information sessions on
domestic abuse at workplaces, in schools and for other groups. In addition, the organization also receives
government grants and generates some fundraising income each year.
Stratford House
was incorporated
with help from a wealthy private citizen and is governed by a volunteer board. The organization started
operations on
July 1
2015
.
Below is a revised list of accounts for
Stratford House
.
Assets
Income
101
Cash
401
Fee Income
102
Accounts Receivable - Fees
402
Donations/Pledges Income
103
Accounts Receivable - Donations
403
Government Grant Income
104
Accounts Receivable - Grants
105
Equipment/Furniture
Expenses
106
Accumulated Depreciation - Equip/Furn
501.1
Office Staff Wage Expense
107
Vehicle
501.2
Shelter Staff Wage Expense
108
Accumulated Depreciation - Vehicle
501.3
Outreach Staff Wage Expense
109
Prepaid Rent
501.4
Employers' EI Expense
110
Prepaid Insurance
501.5
Employers' CPP Expense
111
Supplies
502
Rent Expense
503
Utilities Expense
Liabilities
504
Supplies Expense
201
Accounts Payable
505
Insurance Expense
202.1
Employees' Wages Payable
506
Vehicle Expense
202.2
Employees' CPP Payable
507
Depreciation Expense - Equip/Furn.
202.3
Employees' EI Payable
508
Depreciation Expense - Vehicle
202.4
Employees' Income Tax Payable
509
Bad Debt Expense
202.5
Dental Insurance Payable
202.6
Union Dues Payable
202.7
Employer CPP Payable
202.8
Employer EI Payable
203
Taxes Payable
204
Unearned Income
Equity
301
Retained Earnings
302
Withdrawals
Stratford House
follows a weekly pay period. The following information is available fo
the pay period ending April 17, 2016.
Employee
Hours of Work Per Day
Pay
Dental
Union
Earnings
Name
Mon.
Tues.
Wed.
Thurs.
Fri.
Sat.
Sun.
Rate
Insurance
Dues
to end of
Apr.11
Apr.12
Apr.13
Apr.14
Apr.15
Apr.16
Apr.17
$
$
$
Previous Week
Janine
10
9
8
9
8
4
0
$27.50
$45.00
$16.50
$75,000
Connie
8
7
6
7
10
5
0
$25.75
$45.00
$15.45
$65,000
Karen
7
6
8
9
0
0
0
$25.50
$45.00
$15.30
$60,000
Taylo
8
7
0
8
7
4
5
$19.00
$45.00
$11.40
$36,000
Gary
0
7
6
7
9
5
4
$18.50
$45.00
$11.10
$32,000
Pat
9
8
7
8
7
4
4
$19.50
$45.00
$11.70
$40,000
Stephen
10
9
8
0
8
4
6
$17.75
$45.00
$10.65
$28,000
The following information relates to the payroll system at
Stratford House
:
- Overtime pay is paid for work exceeding 40 hours per week.
- Overtime pay is
150%
of regular pay.
- Income tax is calculated at
22%
of gross pay.
- Employee CPP contributions are made to a maximum of
$52,500.00
in wages. The first
$3,500.00
in wages is exempt from CPP
contributions. The exemption is spread over 52 weeks. The cu
ent CPP
rate is
4.95%
per eligible wage dollar.
- Employee EI contributions are made up to a maximum of
$48,600.00
- There is no wage exemption for EI. The cu
ent EI rate of
1.88%
is applied to wages earned.
- Employer CPP contributions are equal to employee contributions and are
expense weekly.
- Employer EI contributions are
140%
of employee contributions
and are expensed weekly.
- Janine, Connie and Karen's wages are charged to Office Staff Wage
Expense. All other employees' wages are charged to Shelter Staff Wage
Expense.
Instructions:
Create a payroll register showing pay, deductions and net pay for each employee. Prepare two
April 17, 2016 journal entries: (1) to record the Payroll Register information, showing
expenses and payables and (2) to record the employer's EI and CPP obligations. Refer to the
chart of accounts at the beginning of Assignment #4. In addition, also prepare two April
18, 2016 journal entries: (1) to record
Stratford House
payment of employee wages and
(2) to record the payment of other payables fo
Stratford House
.
Classification: Protected A
IA4 Template
Stratford House Payroll Registe
Time Period:
Employee Hours of Work Per Day Pay Dental Union Earnings Earnings Regular
Name Monday Tuesday Wednesday Thursday Friday Saturday Sunday Rate Insurance Dues to end of Regular OT Earnings OT Gross Income Dental Union Total Net
Mar.9 Mar.10 Mar.11 Mar.12 Mar.13 Mar.14 Mar.15 $ $ $ Previous Week hours hours pay Pay EI CPP Tax Insurance Dues Deductions Pay Office Shelte
Janine $ - 0 $ - 0 $ - 0 $ - 0 0 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Connie $ - 0 $ - 0 $ - 0 $ - 0 0 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Karen $ - 0 $ - 0 $ - 0 $ - 0 0 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Taylor $ - 0 $ - 0 $ - 0 $ - 0 0 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Gary $ - 0 $ - 0 $ - 0 $ - 0 0 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Pat $ - 0 $ - 0 $ - 0 $ - 0 0 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Stephen $ - 0 $ - 0 $ - 0 $ - 0 0 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Weekly CPP exemption
0