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The two employees of Silver Co. receive various fringe benefits. Silver Co. provides vacation at the rate of $365 per day. Each employee earns one
The two employees of Silver Co. receive various fringe benefits. Silver Co. provides vacation at the rate of $365 per day. Each employee earns one day of vacation per month worked. In addition, Silver Co. pays a total amount of $750 per month in medical Insurance premiums. Silver also contributes a total amount of $500 per month into an employee retirement plan. The federal unemployment tax rate is 6%, while the state tax rate is 4%. Unemployment taxes apply to the first $7,000 of earnings per employee. Assume a Social Security tax rate of 6% and a Medicare tax rate of 1.5%. 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 Co's total payroll cost (salary, payroll taxes, and fringe benefits) for the year? (Assume that each employee earns $365.00 per day) Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare the monthly Journal entry for the accrued fringe benefits, car no entry is required for a transaction/event, select "No joumal antry required in the first account field.) View transaction list Journal entry worksheet 1 Record the entry for the accrued fringe benefits Note: Enter debits before credits Event General Journal Debit Credit ne dos Orow. Required A Required Required Show the effect of the preceding transaction on a horizontal statements modellike. (In the Cash Flow column, use the initials (OA) to desiate operating activity, (TA) for investing activity, CFA) for financing activity and (NA) for not affect> SILVER COMPANY Horizontal Statements Model Assets Liabilities + Stockholders' Equity Income Statement Various Common Retained Cash Flow Revenge Expense Net Income Payable Required A Bured > Complete this question by entering your answers in the tabs below. Required A Required B Required C if the two employees each worked 250 days, what is Silver Co's total payroll cost (salary, payroll taxes, and fringe benefits) for the year? (Assume that each employee earns $365.00 per day.) (Round your answer to 2 decimal places.) Total payroll cost
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