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Art Parrish Is the Sole Employee of Parrish Sales

question 135

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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 a credit to Employee benefits payable for $950.

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Definitions:

Competitive Wages

Compensation or salary levels that are attractive enough to retain and recruit employees, often in line with or above averages within the industry or region.

Increased Work

A situation where the volume or intensity of tasks and responsibilities assigned to an individual or team grows.

Training

Provides learning opportunities to acquire and improve job-related skills.

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