Accounting Practice Problem 12

Vander Co. provides medical care and insurance benefits to its retirees. In the current year, Vander agrees to pay $10,700 for medical insurance and contribute an additional 5% of the employees $212,000 gross salaries to a retirement program.

(1) Record the entry for these accrued (but unpaid) benefits on December 31.
(2) Assuming $6,200 of the retirement benefits are not to be paid for five years, how should this amount be reported on the current balance sheet?

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 Credit Dec 31 Record entry Clear entry View general journal Check my work Vander Co. provides medical care and insurance benefits to its retirees. In the current year, Vander agrees to pay $10.700 for medical insurance and contribute an additional 5% of the employees' $212,000 gross salaries to a retirement program (1) Record the entry for these accrued (but unpaid) benefits on December 31. (2) Assuming $6,200 of the retirement benefits are not to be paid for five years, how should this amount be reported on the current balance sheet? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming $6,200 of the retirement benefits are not to be paid for five years, how should this amount be reported on the current balance sh Retirement liabilities to employees who will not retire within the next year be reported on the current balance sheet as Long-term liability