8 riverrun company provides medical care and insurance benefits to its retirees. in the current year…
8 riverrun 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. journal entry worksheet record the costs of employee benefits. note: enter debits before credits. date general journal debit credit december 31
Answer
Explanation:
Step1: Identify the nature of the expense
The company has accrued expenses for medical insurance ($19,500) and retirement - program contribution ($9,350) for retirees. These are employee - benefit expenses.
Step2: Determine the debit account
The expenses related to employee benefits are debited to the "Employee Benefits Expense" account. The total expense is the sum of the medical insurance and retirement - program contribution. So, the amount to be debited is $19,500 + 9,350=28,850$.
Step3: Determine the credit account
Since these are accrued but unpaid benefits, a liability account "Accrued Employee Benefits Payable" is credited for the same amount of $28,850$.
Answer:
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| December 31 | Employee Benefits Expense | $28,850$ | |
| December 31 | Accrued Employee Benefits Payable | $28,850$ |