Belkin Co. provides medical care and insurance benefits to its retirees. In the current year, Belkin agrees to contribute 5% of the employees’ $380,000 gross salaries to a retirement program. What is the amount of employee benefits expense for the current period?
Just like pension, Belkin Co. has to make a provision for other retirement benefit programs. It has to create an expense and make the provion of $14000 (5% of 380000) subject to professional judgement of experts.
Retirement liabilites to employees who wil not be paid retirement benefits within the next year are classified on the balance sheet as- Long Term Liability
Belkin Co. provides medical care and insurance benefits to its retirees. In the current year, Belkin...
Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $5,500 for medical insurance and contribute an additional $9,000 to a retirement program. Record the entry for these accrued (but unpaid) benefits on December 31.
Can I also get the steps from where the numbers come up i'll appreciate it Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $27,500 for medical insurance and contribute an additional $9,550 to a retirement program. Record the entry for these accrued (but unpaid) benefits on December 31. View transaction list Journal entry worksheet Record the costs of employee benefits. Note: Enter debits before credits. Date General Journal Debit...
MC Qu. 138 Athena Company provides... Athena Company provides employee health Insurance that costs $14.9 per month. In addition the company salary to a retirement program. The entry to record the accrued benefits for the month would include a: contributes an amount equal to 3% of the 0510 Multiple Choice Debit to Medical Insurance Peyable $14,900. Debit to Employee Retirement Program Payable $4,470 Debit to Employee Benefits Expense $19,370. Credit to Employee Benefits Expense $14.900 K Prev 47 of 50!...
The two employees of Silver Co. receive various fringe benefits. Silver Co. provides vacation at the rate of $325 per day. Each employee earns one day of vacation per month worked. In addition, Silver Co. pays a total amount of $670 per month in medical insurance premiums. Silver also contributes a total amount of $420 per month into an employee retirement plan. The federal unemployment tax rate is 6%, while the state tax rate is 4%. Unemployment taxes apply to...
Human Resources Manor Care Changes Its Benefits and Reduces Turnover When Manor Care, Inc. set out to become one of the world’s great service organizations, it decided to find out what would motivate its front-line service employees to stay with the company. At 72 percent, employee turnover was a big problem for the Springfield, Maryland-based parent company of Choice Hotels International and Manor Health Care Corporation. After conducting extensive surveys and studies, the company concluded that to reduce turnover, it...
U UNUIDIoyment tax. Also, the company provides the following benefits for employees: health insurance company, $2,800), life insurance (cost to the company, $370), and retirement benefits (cost to the compar salaries expense). (Click the icon to view payroll tax rate information.) Read the reg i Requirements Requiremen required. Begin with th first, then cre 1. Journalize Pablo's expenses for employee benefits and for payroll taxes. Explanations are not required. 2. What was Pablo's total expense for 2018 related to payroll?...
Sunland Inc. provides the following information related to its post-retirement health-care benefits for the year 2020: Defined post–retirement benefit obligation at January 1, 2020 $114,000 Plan assets, January 1, 2020 45,800 Actual return on plan assets, 2020 4,000 Discount rate 11% Service cost, 2020 56,200 Plan funding during 2020 22,200 Payments from plan to retirees during 2020 6,200 Actuarial loss on defined post-retirement benefit obligation, 2020 (end of year) 26,300 Sunland Inc. follows IFRS. Calculate the post–retirement benefit expense for...
journal Required information Liabilities for health and pension benefits, warranties, and bonuses are recorded with estimated amounts. These items are recognized as expenses when incurred and matched with revenues generated. Knowledge Check 01 As of December 31, Marr, Inc., has accrued benefits to its employees for medical insurance (in the amount of $12,000) and a contribution to a retirement program (at 10 % of the employees' $200,000 gross salary). Prepare the December 31 entry for Marr by selecting the account...
Vacation Pay and Pension Benefits Putnam Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $40,700 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $435,000 during the period, and the full amount due was contributed to the pension plan administrator. Required: (a) Provide the journal entry for the vacation pay. (b) Provide the journal entry for the pension...
Brown Industries provides postretirement health care benefits to employees. On January 1 of the current calendar year, the following data were available. Prior service cost APBO Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility $ 57,000 $550,000 none 25 years 20 years Management amortizes prior service cost on a straight-line basis. The interest rate is 10%. Service cost for the current year is $102,000. Required: 1. Calculate the prior service...