A&b

Homework 1 Check The two employees of Siver Co. receive various fringe benefits. Silver Co. provides vacation at the rate of $315 per day Each employee earns one day of vacation per month work ed. In addition, Silver Co. pays a total amount of $650 per month in medical premiums. Silver also contributes a total amount of $400 per month into an employee retirement plan. The federal insurance unemployment tax rate is 6%, while the state unemployment tax rate is per employee. Assume a Social Security tax rate of 6% and a Medicare tax rate of 1.5%. 4%. Unemployment taxes apply to the first $7,000 of earnings Required a. Prepare the computation of accrued fringe benefits per month. b. Show the effect of accrued fringe benefits per month on a horizontal statements model. (In the Statement of Cash Flows column, use the initials (OA) to designate operating activity, (IA) for investing activity, (FA) for financing activity and (NA) for not affected. Enter any decreases to the account with a minus sign.) SILVER COMPANY Statement of Cash Common Retained RevenueExpense Net