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?

Question

Quizplus · Accepted Answer

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, which represents the liability to pay these benefits to the employee. Therefore, option A, B, and C are incorrect. The correct option is D, which shows a credit to Employee benefits payable.

Art Parrish Is the Sole Employee of Parrish Sales