Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter. Required: 1. Calculate the estimated cost of workers' compensation insurance for the year. $_________
Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter. Required: 1. Calculate the estimated cost of workers' compensation insurance for the year. $_________
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 5P
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Question
Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter.
Required:
1. Calculate the estimated cost of workers' compensation insurance for the year.
$_________
![2. Show the journal entry for the first quarterly payment on January 2, 20--.
If an amount box does not require an entry, leave it blank.
Page:
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Jan. 2
1
2
3
3
3a. Assume Ryan's actual payroll for the year was $89,000. Calculate the additional premium owed for 20--.
3b. Assume Ryan's actual payroll for the year was $89,000. Record the adjustment needed on December 31, 20--. The actual payment of the additional insurance premium will not take
place until January of the following year.
If an amount box does not require an entry, leave it blank.
Page:
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Dec. 31
2
3
3
1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F757b4d07-2fce-4816-bcd0-36b0cdb818c6%2F1b00a212-69b9-41ad-82fa-00ac98f55ac4%2Foaakkpp_processed.png&w=3840&q=75)
Transcribed Image Text:2. Show the journal entry for the first quarterly payment on January 2, 20--.
If an amount box does not require an entry, leave it blank.
Page:
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Jan. 2
1
2
3
3
3a. Assume Ryan's actual payroll for the year was $89,000. Calculate the additional premium owed for 20--.
3b. Assume Ryan's actual payroll for the year was $89,000. Record the adjustment needed on December 31, 20--. The actual payment of the additional insurance premium will not take
place until January of the following year.
If an amount box does not require an entry, leave it blank.
Page:
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Dec. 31
2
3
3
1.
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