Question

Athena Company provides employee health insurance that costs $14,200 per month. In addition, the company contributes an amount equal to 5% of the employees' $142,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:________.

Debit to Employee Retirement Program Payable $7,100.
Credit to Employee Benefits Expense $14,200.
Debit to Payroll Taxes Expense $21,300.
Debit to Employee Benefits Expense $21,300.
Debit to Medical Insurance Payable $14,200.

Answer 1

Debit to Employee Benefits Expense $21,300

Step-by-step explanation:

Based on the information given the Journal entry to record the accrued benefits for the month would include a Debit to Employee Benefits Expense for the amount of $21,300 calculated as:

5% × $142,000 gross salary

=$7,100

Hence employee health insurance costs $14,200 per month +$7,100

=$21,300

Therefore The entry to record the accrued benefits for the month would include a:

Debit to Employee Benefits Expense $21,300