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

Question

Quizplus · Accepted Answer

The second journal entry in the payroll cycle should record the employee benefits to be paid by the company, so we need to credit the Employee Benefits Payable account. Therefore, options A and C can be eliminated. Additionally, we need to debit an account for the same amount, which is not given as an option. However, option B correctly identifies the account that needs to be debited in this entry, so the correct answer is D.

Art Parrish Is the Sole Employee of Parrish Sales