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.DATEDESCRIPTIONDEBIT CREDITREF.1 Jan. 212333a. 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 takeplace until January of the following year.If an amount box does not require an entry, leave it blank.Page:POST.DATEDESCRIPTIONDEBIT CREDITREF.1 Dec. 312331.

Given that: Estimated payroll = $84000 Insurance premium = 0.6%

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. $_________

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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