Contra Accounts?

Question

can anyone help me post insurance contra accts. for example
we pay 1/2 EE insurance.

dental $100.00
vision $100.00
Health $500.00

We paid the bill to the insurance and coded it to the insurance expense.

How do I JE this??? NEED HELP

Thanks.

Answer 1

When you paid the staff salaries, you'd have withheld the insurance deductions. For eg. salaries were $2500 (gross), your JE when doing salaries :
Dr Salaries 2500
Cr Dental, vision, health insurance withheld payable 700
Cr Net salaries payable 1800
and you'd have paid $1800 in salaries.

The co. matches the insurance, so:
Dr Insurance expense 700
Cr Insurance payable 700
Together with the earlier entry, your total insurance payable is $1400. When you do pay the insurance co. the $1400, your entry:
Dr Insurance payable 1400
Cr Cash 1400

If you've wrongly coded the payment to insurance expense, just make the adjustment:
Dr Insurance payable 1400
Cr Insurance expense 1400