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Workers' Compensation Insurance and Adjustment Specialty Manufacturing estimated that its total payroll for the coming year would be $462,500. The workers' compensation insurance premium rate is 0.2%.

Workers' Compensation Insurance and Adjustment Specialty Manufacturing estimated that its total payroll for the coming year would be $462,500. The workers' compensation insurance premium rate is 0.2%.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 6SEA
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Workers' Compensation Insurance and Adjustment

Specialty Manufacturing estimated that its total payroll for the coming year would be $462,500. The workers' compensation insurance premium rate is 0.2%.

1. Calculate the estimated workers' compensation insurance premium. $4 Prepare the journal entry for the payment as of January 2, 20--. Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO, REF. 20-- 1 Jan. 2 1 2 3 3 2. Assume that Specialty Manufacturing's actual payroll for the year is $469,500.00. Calculate the total insurance premium owed. Prepare a journal entry as of December 31, 20--, to record the adjustment for the underpayment. The actual payment of the additional premium will take place in January of the next year. Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- 1 Dec. 31 1 2 2 3 3
Transcribed Image Text:1. Calculate the estimated workers' compensation insurance premium. $4 Prepare the journal entry for the payment as of January 2, 20--. Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO, REF. 20-- 1 Jan. 2 1 2 3 3 2. Assume that Specialty Manufacturing's actual payroll for the year is $469,500.00. Calculate the total insurance premium owed. Prepare a journal entry as of December 31, 20--, to record the adjustment for the underpayment. The actual payment of the additional premium will take place in January of the next year. Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- 1 Dec. 31 1 2 2 3 3
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