Athena Company provides employee health insurance that costs $15,400 per month. In addition, the company contributes an amount equal to 4% of the employees' $154,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a: Multiple Choice Credit to Employee Benefits Expense $15,400. Debit to Employee Retirement Program Payable $6,160. Debit to Payroll Taxes Expense $21,560. Debit to Employee Benefits Expense $21,560. Debit to Medical Insurance Payable $15,400.

Question

Jade

Business

5 January, 20:25

Athena Company provides employee health insurance that costs $15,400 per month. In addition, the company contributes an amount equal to 4% of the employees' $154,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a: Multiple Choice Credit to Employee Benefits Expense $15,400. Debit to Employee Retirement Program Payable $6,160. Debit to Payroll Taxes Expense $21,560. Debit to Employee Benefits Expense $21,560. Debit to Medical Insurance Payable $15,400.

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Trevon Copeland · Answer 1

Debit to Employee Benefits Expense $21,560.

Explanation:

The journal entry is shown below:

Employee Benefits Expense $21,560

To Employee Retirement Program Payable $6,160

To Employee Health Insurance Payable $15,400

(Being accrued benefit is recorded)

The computation is shown below:

For Employee Retirement Program Payable

= Gross salary * contributed percentage

= $154,000 * 4%

= $6,160

And, for Employee Benefits Expense, it would be

= $15,400 + $6,160

= $21,560