Answer:
Journal Entry to record the employee benefit expense
Dr. Employee Benefits Expense $32,000
Cr. Employee Medical Insurance Payable $12,000
Cr. Employee retirement program payable $20,000
Explanation:
Employee benefits expense is the sum of medical insurance and retirement program expenses. As these payments are accrued and not yet been paid, so these will be classified as liabilities.
Employee Medical Insurance expense = $12,000
Employee retirement expense = $200,000 x 10% = $20,000
Employee benefits expense = Employee Medical Insurance + Employee retirement program
Employee benefits expense = $20,000 + $12,000
Employee benefits expense = $32,000
