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Exercise 9.12A (Static) Fringe benefits and payroll expense LO 9.5 The two employees of Silver Company receive various fringe benefits. Silver Company provides vacation at the rate of $315 per day. Each employee earns one day of vacation per month worked. In addition, Silver Company pays a total amount of $650 per month in medical insurance premiums. Silver also contributes a total amount of $400 per month into an employee retirement plan. The federal unemployment tax rate is 6 percent, while the state unemployment tax rate is 4 percent. Unemployment taxes apply to the first 57,000 of earnings per employee. Assume a Social Security tax rate of 6 percent and a Medicare tax rate of 1.5 percent 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. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials (OA) to designate operating activity, (IA) for investing activity, and (FA) for financing activity. Not all cells require input