An Employer Has an Employee Benefit Package That Includes Employer-Paid

question 31

Essay

An employer has an employee benefit package that includes employer-paid health insurance and an employer-paid retirement program.The March payroll included contributions of $5,500 for health insurance,and 10% of the employees' $120,000 gross salaries for the employee retirement program.Prepare the journal entry to record these employee benefits.

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Definitions:

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Maximize Utility

The process or goal of obtaining the highest level of satisfaction or benefit from consuming goods and services, given a consumer's limitations, such as income or resources.

Income

The financial gain received by an individual or entity, typically measured over a period of time, deriving from labor, investment, or business ventures.

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.