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Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees' well-being. The company offers its employees free medical, dental, and life insurance coverage.
Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees' well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 6% of their salaries. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Dental insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld FICA tax rate Federal and state unemployment tax rate $1,700,000 85,000 34,000 11,900 5,950 365,500 7.65% 6.20% Required: 1., 2. & 3. Record the necessary journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Credit Date January 24 Debit 1,700,000 1 General Journal Salaries Expense FICA Tax Payable Income Tax Payable Accounts Payable (Retirement Plan) Salaries Payable 85,000 2 January 24 136,850 Salaries Expense Accounts Payable (Medical Insurance) Accounts Payable (Dental Insurance) Accounts Payable (Life Insurance) Accounts Payable (Retirement Plan) 34,000 11,900 5,950 85,000 3 January 24 Payroll Tax Expense FICA Tax Payable Unemployment Tax Payable
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