Reference no: EM131828316

Lavender Ltd pays its employees on a fortnightly basis. All employee benefits are recognised as expenses. The following information is provided for its July and August payrolls:

		July			August
		$	$		$	$
Fortnightly payroll			476,000			574,000
			590,000			492,000
Gross payroll for the month			1,066,000			1,066,000
Deductions payable to:
Taxation authority		205,000			201,000
Health fund		16,000			16,000
Community charity		3,300			3,300
Union fees		5,300	229,600		5,300	225,600
Total deductions for the month
Net wages and salaries paid
14 July, 11 August		376,195			453,650
28 July, 25 August		460,205	836,400		386,750	840,400
			1,066,000			1,066,000

The two fortnightly payrolls in August were for the fortnight ended Friday, 7 August and Friday, 21 August. The payrolls were processed and paid on the following Monday and Tuesday respectively. Payroll deductions are remitted as follows:

Health fund deductions		3rd day of the following month
Union fees		3rd day of the following month
Taxation authority		15th day of the following month
Community charity		21st day of the following month

Prepare all journal entries to account for the August payroll and all payments relating to employee benefits during August. NOTICE: the only accounts you should use for the general journals are: BANK, PAYROLL TAXES EXPENSES, WAGES AND SALARIES EXPENSE, WAGES AND SALARIES PAYABLE, DIRECT LABOUR EXPENSE