Question

Problem 8-4B Record payroll (L08-3) 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 7% of their salaries. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Dental insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld FICA tax rate Federal and state unemployment tax rate $1,800,000 90.000 36,000 12,600 6,300 387,000 7.656 6.205 Required: 1., 2. & 3. Record the necessary journal entries, (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 Record the employee salary expense, withholdings, and salaries payable. Note: Enter debits before credits General Journal Debit Credit Date January 24

Answer 1

Solution 1800000 90000 wages and salaries contribution to voluntary retirement - plan payable federal and State Income Tax payable FICA Taxes payable (1800000 X 7.65%) salaries & wages payable 387000 137700 1185300

90000 36000 12600 6300 36000 Employers contribution to voluntary retairement plan. Medical Insurance experses Dental Insurance premium Life Insurance premium Medical Insurance payable Dental Insurance premium payable Life Insurance premium payable contrebution to voluntary retirement plan payable. [To record fringe benefits provided by employers 12600 6300 9oooo federal and state Income tax experse 387000 FICA Taxes 137700 111600 387000 137200 federal and state unemployment tax expense 1 1 800000 X6.2010) federal and state Income tax payable FICA Taxes payable federal and state unemployment tax payable . [ To record employer payroll Taxes] 111600