Great Manufacturing Company received and paid a premium notice on January 2 for workers' compensation insurance stating the rates for the new year. Estimat employees' earnings for the year are as follows: Estimated Wages Rate per Hundred Estimated Classification and Salaries (Percent) Premium Office clerical $91,300 0.10 $91.30 Warehouse work 31,900 0.96 306.24 Manufacturing 268,000 2.10 5,628.00 $6,025.54 At the end of the year, the exact figures for the payroll are as follows: Actual Wages Rate per Hundred Exact Classification and Salaries (Percent) Office clerical $92,600 0.10 Premium $92.60 Warehouse work Manufacturing 32,800 270,600 0.96 314.88 2.10 5,682.60 $6,090.08 Required: a. Record the estimated premium entry for the payment on January 2, in general journal form. DATE 20-- GENERAL JOURNAL DESCRIPTION Jan. 2 Prepaid Insurance, Workers' Compensation Prepaid Insurance, Workers' Compensation To record premium payment based on estimated wages and salaries for the year. Feedback DOC. NO. POST. DEBIT REF. PAGE CREDIT 6,025.54 6,025.54 Check My Work The estimated Worker's Compensation Insurance amount is based on the yearly Payroll. This is a prepaid insurance which is an asset. We are taking Cash out of the bank. Remember the normal balances and record accordingly. b. Record the adjusting entries on December 31 for the insurance expired and for the additional premium. (Journalize the adjusting entry for the insurance first, then the additional premium.) If required, round your final answer to the nearest cent. GENERAL JOURNAL PAGE DATE DESCRIPTION DOC. NO. POST. REF. DEBIT CREDIT 20-- Adjusting Entries Dec. 31 Workers' Compensation Insurance Expense Prepaid Insurance, Workers' Compensation 396,000 X 396,000 X Dec. 31 Workers' Compensation Insurance Expense 6,090.08 X Workers' Compensation Insurance Payable 6,090.08 X