The two employees of Silver Company receive various fringe benefits. Silver Company provides vacation at the rate of $$405$ per day.

Each employee earns one day of vacation per month worked. In addition, Silver Company pays a total amount of $$830$ per month in

medical insurance premiums. Silver also contributes a total amount of $$580$ per month into an employee retirement plan. The federal

unemployment tax rate is $6$ percent, while the state tax rate is $4$ percent. Unemployment taxes apply to the first $$7,000$ of earnings per

employee. Assume a Social Security tax rate of $6$ percent and a Medicare tax rate of $1\mathrm{.}5$ percent.

Required

a$.$ Prepare the monthly journal entry for the accrued fringe benefits.

b$.$ Show the effect of the preceding transaction on a horizontal statements model.

c$.$ If the two employees each worked $250$ days, what is Silver Company's total payroll cost $($salary$,$ payroll taxes, and fringe benefits$)$ for

the year? $($Assume that each employee earns $$405\mathrm{.}00$ per day.$)$

Complete this question by entering your answers in the tabs below.

Prepare the monthly journal entry for the accrued fringe benefits. $($If no entry is required for a transaction$/$event$,$ select

$"$No journal entry required" in the first account field.$)$

Journal entry worksheet

A

Record the entry for the accrued fringe benefits.

Note: Enter debits before credits.