DuPage Company Agrees to Pay an Amount for Medical Insurance

Multiple Choice

DuPage Company agrees to pay an amount for medical insurance equal to $12,000 and contribute an additional 15% of the employees' $100,000 gross salary to a retirement program.How would the company record this transaction?

A) Debit Salaries Expense for $27,000,credit Employee Medical Insurance Payable for $12,000,and credit Employee Retirement Program Payable for $15,000.
B) Debit Employee Medical Insurance Payable for $12,000,debit Employee Retirement Program Payable for $15,000,and credit Employee Benefits Expense for $27,000.
C) Debit Employee Benefits Expense for $27,000,credit Employee Medical Insurance Payable for $12,000,and credit Employee Retirement Program Payable for $15,000.
D) Debit Payroll Tax Expense for $27,000,credit Employee Medical Insurance Payable for $12,000,and credit Employee Retirement Program Payable for $15,000.
E) Debit Salaries Expense for $27,000 and credit Salaries Payable for $27,000.