In Oregon, employers who are covered by the state workers€™ compensation law withhold employee contributions from the wages of covered employees for the workers€™ benefit fund at the rate of 1.65¢ for each hour or part of an hour that the worker is employed. Every covered employer is also assessed 1.65¢ per hour for each worker employed for each hour or part of an hour. The employer-employee contributions for workers€™ compensation are collected monthly, quarterly, or annually by the employer€™s insurance carrier, according to a schedule agreed upon by the employer and the carrier. The insurance carrier remits the contributions to the state€™s Workers€™ Compensation Department.
Umber Company, a covered employer in Oregon, turns over the employer-employee workers€™ compensation contributions to its insurance carrier by the 15th of each month for the preceding month. During the month of July, the number of full-time employee-hours worked by the company€™s employees was 26,110; the number of part-time employee-hours was 3,490.
a.The amount the company should have withheld from its full- and part-time employees during the month of July for workers€™ compensation insurance is $...............
b.The title you would give to the general ledger account to which the amount withheld from the employees€™ earnings would be credited is:
c.Journalize the entry on July 31 to record the employer€™s liability for workers€™ compensation insurance for the month.

d. Journalize the entry on August 15 to record payment to the insurance carrier of the amount withheld from the employees€™ earnings for workers€™ compensation insurance and the amount of the employer€™s liability.

Transcribed Image Text:

JOURNAL DATE DEBIT POST. REF. DESCRIPTION CREDIT 2 3 3 JOURNAL DATE CREDIT POST. REF. DESCRIPTION DEBIT 1 3