At Carla Vista Manufacturing, the estimated gross payroll total for all employees this year is $1,019,000. The job classifications and their estimated payroll are as follows: administrative staff $177,000, warehouse staff $260,000, and manufacturing staff $582,000. The premium rate for administrative staff is 0.2%, warehouse staff 1.4%, and manufacturing staff 3.8%. Actual payroll is $1,032,000. The job classifications and their actual payroll are as follows: administrative staff $175,000, warehouse staff $265,000, and manufacturing staff, $592,000. (a) Prepare the journal entry for the payment of workers’ compensation premium.
At Carla Vista Manufacturing, the estimated gross payroll total for all employees this year is $1,019,000. The job classifications and their estimated payroll are as follows: administrative staff $177,000, warehouse staff $260,000, and manufacturing staff $582,000. The premium rate for administrative staff is 0.2%, warehouse staff 1.4%, and manufacturing staff 3.8%. Actual payroll is $1,032,000. The job classifications and their actual payroll are as follows: administrative staff $175,000, warehouse staff $265,000, and manufacturing staff, $592,000. (a) Prepare the journal entry for the payment of workers’ compensation premium.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At Carla Vista Manufacturing, the estimated gross payroll total for all employees this year is $1,019,000. The job classifications and their estimated payroll are as follows: administrative staff $177,000, warehouse staff $260,000, and manufacturing staff $582,000. The premium rate for administrative staff is 0.2%, warehouse staff 1.4%, and manufacturing staff 3.8%. Actual payroll is $1,032,000. The job classifications and their actual payroll are as follows: administrative staff $175,000, warehouse staff $265,000, and manufacturing staff, $592,000.
(a)
Prepare the journal entry for the payment of workers’ compensation premium. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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Account Titles and Explanation
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Debit
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Credit
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| (To record payment of workers’ compensation insurance premium) |
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