Question

Dylan's Mexican Restaurant incurred salaries expense of $60,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax of the total salaries, $15,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,600), life insurance (cost to the company. $410), and retirement benefits (cost to the company, 5% of salaries expense) Click the icon to view payroll tax rate information) Read the requirements Requirement 1. Journalize Dylan's expenses for employee benefits and for payroll taxes. Explanations are not required Bogin with the entry to accrue Dylan's employer payroll taxes. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit

Answer 1

Journal entry to record payroll tax expense is correct and already done.

Journal entry for Dylan's employee benefit expenses:

Date	Accounts and explanation	Debit	Credit
	Employee benefit expense	6010
	Employee health insurance payable		2600
	Employee life insurance payable		410
	Employee retirement benefits payable [60,000*5%]		3000