An employer agrees to pay $14,800 for medical insurance and contribute an additional 5% of the employees' $148,000 gross salaries to a retirement program. The entry to record these accrued benefits is:

An employer agrees to pay $14,800 for medical insurance and contribute an additional 5% of the employees' $148,000 gross salaries to a retirement program. The entry to record these accrued benefits is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Expert Solution

Step 1

Employee benefit expenses:

The expenses that an employer incurs for providing benefits to the employee are termed to as employee benefit expenses, it is part of payroll expense and it should be recorded in the income statement of the company.

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