qs 11-14 (algo) accounting for health and pension benefits lo p4\nriverrun company provides medical care and…

qs 11-14 (algo) accounting for health and pension benefits lo p4\nriverrun company provides medical care and insurance benefits to its retirees. in the current year, riverrun agrees to pay $19,500 for medical insurance and contribute an additional $9,350 to a retirement program. record the entry for these accrued (but unpaid) benefits on december 31.\nview transaction list\njournal entry worksheet\n1\nrecord the costs of employee benefits.\nnote: enter debits before credits.\ndate general journal debit credit\ndecember 31 employee benefits expense 28,850\nemployee benefits plan payable 28,850
Answer
Explanation:
Step1: Calculate total expense
Add medical insurance cost and retirement - program contribution. $19500 + 9350=28850$.
Step2: Record journal entry
Debit the expense account to recognize the cost, and credit the payable account as the amount is accrued but unpaid.
Answer:
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| December 31 | Employee benefits expense | 28850 | |
| December 31 | Employee benefits plan payable | 28850 |