Exercise $9-12$A $($Static$)$ Fringe benefits and payroll expense LO $9-5$

The two employees of Silver Company receive various fringe benefits. Silver Company provides vacation at the rate of $$315$ per day. Each employee earns one day of vacation per month worked. In addition, Silver Company pays a total amount of $$650$ per month in medical insurance premiums. Silver also contributes a total amount of $$400$ per month into an employee retirement plan. The federal unemployment tax rate is $6$ percent, while the state unemployment tax rate is $4$ percent. Unemployment taxes apply to the first $$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:

o$.$ Prepare the computation of accrued fringe benefits per month.

b$.$ Show the effect of accrued fringe benefits per month 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 $$315$ per day.$)$

Answer is not complete.

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

Required A

Required B

Required C

Prepare the computation of accrued fringe benefits per month.

Total monthly fringe benefits expense

$

$1,680$

$$

Show the effect of accrued fringe benefits per month on a horizontal statements model.

Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials $($OA$)$ to desigi activity, $($IA$)$ for investing activity, and $($FA$)$ for financing activity. Not all cells require input.

$\backslash$table$[[$SILVER COMPANY$],[$Horizontal Statements Model$],[\backslash$table$[[$Assets$],[$Cash$]],=,$Liabilities,$+,$Stockholders' Equity,Income Statement,$],[,\backslash$table$[[=$