Athena Company provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees' $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:

Question

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The entry to record the accrued benefits for the month should include the expenses of both employee health insurance and contributions to the retirement program.

The entry would be as follows:

Debit Employee Benefits Expense $11,000
 Credit Medical Insurance Payable $5,000
 Credit Employee Retirement Program Payable $6,000

Option A is incorrect because it only accounts for the medical insurance expense and ignores the retirement program contribution. Option C is incorrect because it is a credit entry, which is not needed for the accrued benefits entry. Option D is incorrect because it only accounts for the retirement program contribution and ignores the medical insurance expense. Option E is incorrect because it refers to payroll taxes, which are not relevant to this entry.

Athena Company Provides Employee Health Insurance That Costs $5,000 Per