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)
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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Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F757b4d07-2fce-4816-bcd0-36b0cdb818c6%2F97b2b92b-b79d-4bb5-9722-ad0923c7c73f%2Fx4g12vq_processed.png&w=3840&q=75)
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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