Chapter 8

Question 1

Payroll Register

Answer 1

Chronological listing of transactions
For payroll purposes usually by cheque, separate register for each pay cycle
Provides detail of calculations for each employee of earnings and deductions

Question 2

General Journal

Answer 2

Records used to record financial transactions by date referencing general ledger accounts.

Example used is general journal format.

Journals may also be specific to source of entries, payroll often use summaries of registers.

Question 3

Journal Entry

Answer 3

Used to post journal information to accounts which record ongoing transactions by type.
Organized into groupings:
Assets
Liabilities
Equity
Revenues
Expenses

Each account in the General Ledger can have two types of entries − debits and credits. Debit entries are recorded in the left column of a ledger account and credit entries are entered into the right column of the ledger account.

Question 4

Journal entry contains

Answer 4

Journal entry number
Transaction date
Accounting period or month
Account number and name
Debit amounts
Credit amounts
Total debits and credits
Description or explanation
Posting reference
Created by….
Approval

Question 5

Typical Journal Entries

Answer 5

From the payroll register record the gross earnings (expense) and liabilities from employee with-holdings.

Calculate and record additional employer costs
Statutory matching (CPP, EI)
Employer taxes/premiums (EHT, WSIB)
Employer optional