Art Parrish Is the Sole Employee of Parrish Sales

question 78

Multiple Choice

Art Parrish is the sole employee of Parrish Sales.His company pays a portion of his health insurance premium,and also contributes to a retirement plan in his name.The company share of the health insurance premium is $400,and the company contribution to the retirement plan is $550.The third journal entry in the payroll cycle to record the employee benefits to be paid by the company should include which of the following?

• A) Debit Employee benefits payable
• B) Credit Health insurance expense
• C) Credit Retirement plan expense
• D) Credit Employee benefits payable

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