Pigeon Forge Adventures offers its employees the option of contributing up to 5% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld Social Security tax rate Medicare tax rate Federal and state unemployment tax rate Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. $1,400,000 58,800 29,400 5,600 350,000 6.20% 1.45% 6.20% Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pigeon Forge Adventures offers its employees the option of contributing up to 5% of their salaries to a voluntary retirement
plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums.
Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly
payroll period ending February 14 is listed below.
Wages and salaries
Employee contribution to voluntary retirement plan
Medical insurance premiums paid by employer
Life insurance premiums paid by employer
Federal and state income tax withheld
Social Security tax rate
Medicare tax rate
Federal and state unemployment tax rate
Required:
$1,400,000
58,800
29,400
5,600
350,000
6.20%
1.45%
6.20%
f
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.
Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field.)
Transcribed Image Text:Pigeon Forge Adventures offers its employees the option of contributing up to 5% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld Social Security tax rate Medicare tax rate Federal and state unemployment tax rate Required: $1,400,000 58,800 29,400 5,600 350,000 6.20% 1.45% 6.20% f 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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