80.2K

Verified Solution

Link Copied!

Time remaining: 4:02:01

[The following information applies to the questions displayed below.]

Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 6% of their salaries. Assume that no employees cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below.

Wages and salaries	$ 1,850,000
Employee contribution to voluntary retirement plan	92,500
Medical insurance premiums paid by employer	37,000
Dental insurance premiums paid by employer	12,950
Life insurance premiums paid by employer	6,475
Federal and state income tax withheld	397,750
FICA tax rate	7.65 %
Federal and state unemployment tax rate	6.20 %
Required: 1. Record the employee salary expense, withholdings, and salaries payable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) B)Record the employer-provided fringe benefits. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) C)Record the employer payroll taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer & Explanation Solved by verified expert

See Answer