Arrow Systems offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a
voluntary retirement plan up to 6% of their salaries. Assume that no employee's cumulative wages exceed the relevant wage bases.
Payroll information for the bi-weekly payroll period ending January 24th is listed below.
Wages and salaries
Employee contribution to voluntary retirement plan
Medical insurance premiums
Dental insurance premiums
Life insurance premiums
Federal and state income taxes to be withheld
FICA tax rate
Federal and state unemployment tax rate
$1,000,000
60,000
25,000
6,000
7,000
205,000
7.65%
3.80%
Required:
1., 2., & 3. Record the necessary journal entries. (If no entry is required for a particular transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
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1
2
3
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Record the employer-provided fringe benefits.
Note: Enter debits before credits.
Date
January 24
General Journal
Debit
Credit