Question

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:

Answer 1

The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560

Step-by-step explanation:

In order to calculate The entry to record the accrued benefits for the month we would have to calculate the following formula:

Accrued Benefits= Health Insurance Cost+ (Gross Salary × Percentage Contributable)

Accrued Benefits=$15,400+($154,000×4%)

Accrued Benefits=$15,400+$6,160

Accrued Benefits=$21,560

The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560