Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees well-being. The company offers its
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Wages and salaries.................. $2,500,000
Employee contribution to voluntary retirement plan ...... 125,000
Medical insurance premiums paid by employer ....... 50,000
Dental insurance premiums paid by employer ......... 17,500
Life insurance premiums paid by employer .......... 8,750
Federal and state income tax withheld ........... 537,500
FICA tax rate .................... 7.65%
Federal and state unemployment tax rate ........... 6.20%
Required:
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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