ABC pays all its employees on a fortnightly basis.The following information is for its July and August -
- July August
- Fortnightly- Pay $580,000 $700,000
- $720,000 $600,000
- Gross pay month 1 300 000 1 300 000
- Deductions:
- Tax authority 250,000 245,000
- Health fund 20,000 20,000
- Community charity 4,000 4,000
- Union fees 6,500 6,500
- Total deductions - month 280,500 275,500
Net wages and salaries paid
14 July & 11 August 458,775 553,230
28 July & 25 August 560,725 471,270
Payroll deductions:
- Tax authority - 15th day of the following month
- Union fees - 3rd day of the following month
- Health fund - 3rd day of the following month
- Community charity - 21st day of the following month
2 fortnightly payrolls in August were for the fortnight ended Friday 7 August and Friday 21 August. Employees are paid on the following Monday and Tuesday respectively.
Required:
1. Journal entries to record the August payroll and all payments relating to employee benefits during the month of August.
2. A Journal entry to accrue the wages for the remaining days in August.