When Preparing a Payroll Journal Entry for a Salaried Employee

question 18

Multiple Choice

When preparing a payroll journal entry for a salaried employee you must -

• A)record the regular hours worked to determine the salary amount
• B)show the hours worked during the period for EI purposes
• C)show the hours worked during the period for CPP purposes
• D)show the hours worked during the period for WCB (or WSIB)purposes

---

Definitions:

Unearned Revenues

Unearned revenues refer to money received by a company for goods or services that have not yet been provided to the customer.

Liability

A financial obligation or debt owed by an individual or company to another entity, requiring the transfer of resources at a future date.

Credits

An accounting entry that increases liabilities or equity or decreases assets on a company's balance sheet.

Debits

Debits are accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts, typically noted on the left side of accounting ledgers.