Question

Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $31,500 for medical insurance and contribute an additional $9,650 to a retirement program. Record the entry for these accrued (but unpaid) benefits on December 31.

Answer 1

Date Details Debit Credit

December 31, Employee benefits expense $41,150

Medical insurance payable $31,500

Employee Retirement program $9,650

payable

Working

= 31,500 + 9,650

= $41,150