Use the following information to answer questions.
The following totals for the month of April were taken from the payroll register of Branson Corp.:
-The journal entry to record the accrual of the employee's portion of Canada Pension Plan (CPP) would include a
A) debit to CPP Payable of $1,330.
B) debit to CPP Expense of $1,330.
C) credit to Employee Benefits Expense of $1,330.
D) credit to CPP Payable of $1,330.

Question

Use the following information to answer questions.
The following totals for the month of April were taken from the payroll register of Branson Corp.: 
-The journal entry to record the accrual of the employee's portion of Canada Pension Plan (CPP) would include a
A) debit to CPP Payable of $1,330. 
B) debit to CPP Expense of $1,330. 
C) credit to Employee Benefits Expense of $1,330. 
D) credit to CPP Payable of $1,330.

Quizplus · Accepted Answer

CPP Payable is a liability account that represents the amount of CPP that the company owes to the government. When the company accrues the employee's portion of CPP, it is increasing its liability to the government, so it must debit CPP Payable.

Use the Following Information to Answer Questions