The following information relates to Ponte Manufacturing Company's workers' compensation insurance premiums for $20$x$1.$ On

January $15,20$X$1,$ the company estimated its premium for workers" compensation insurance for the year on the basis of that data.

Requlred:

Compute the estimated premiums.

Record in general journal form payment of the estimated premium on January $15,201.$

On January $4,202,$ an audit of the firm's payroll records showed that it had actually paid wages of $$60,960$ to its office

employees and wages of $$306,320$ to its shop employees. Compute the actual premium for the year and the balance due the

insurance company or the credit due the firm.

Prepare the general journal entry on December $31,20$X$1,$ to adjust the Workers' Compensation Insurence Expense account.

Analyze:

If all wages were attributable to shop employees, what premium estimate would have been calculated and recorded on January $15.$

$201?$

Complete this question by entering your answers in the tabs below.

Required $1$

Compute the estimated premiums.

Note: Round "Insurance Rate" answers to $3$ decimal places. i$.$e$.,12\mathrm{.}3\%$ should be entered as $0\mathrm{.}123$