Question

Athena Company provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees' $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:

Answer 1

Answer:

The answer is given below;

Explanation:

Employee Benefit Expense (5,000+120,000*5%)  Dr.$11,000

Accrued Employee Benefits payable                                     Cr.$11,000

As these are the costs that company has to pay for employee retirement and health plans, therefore increase in these expenses will be recorded with corresponding effect to payable.