Question

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! Next >

Answer 1

Solution :- Debit to Employee Benefit Expense $19,370.

Reason :-

Employee benefit are paid to the employee in addition to their normal salary or wages, these benefits are also called perks or perquisites.

Calculation of amount of benefir accrued :-

• Health insurance $14,900
• Retirement program cost $149,000 x 3% = $4,470

Total employee benefit Expense to be accrued

= 14,900 + 4,470 = $19,370

As part of journal entry:

A debit will be given to employee benefit expense with $19,370.