Landmark Homes began operations on January 1, 2007. The company pays workers’ compensation insurance premiums for its employees. The company’s accountant assembled the data below for Landmark Homes for 2007:

Required
1. Prepare the general journal entry to record Landmark Homes’ payment of its estimated 2007 workers’ compensation insurance premium on January 5, 2007.
2. For each of the two separate situations (A) and (B) prepare the general journal entry to adjust Landmark Homes’ 2007 workers’ compensation insurance premium for its actual wages during 2007.

Transcribed Image Text:

Classification Clerical office Carpentry Electricians Estimated Wages $ 65,000 175,000 100,000 Rate per $100 of Wages 0.21 5.82 3.07 Classification Clerical office Carpentry Electricians.. Actual Wages Situation A $ 66,262 186,410 97.312 Actual Wages Situation B $ 59,834 171,211 98,247