Workers' Compensation Insurance and Adjustment

Specialty Manufacturing estimated that its total payroll for the coming year would be $450,000. The workers' compensation insurance premium rate is 0.2%.

Required:

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1. Calculate the estimated workers' compensation insurance premium. $fill in the blank c5ee66063fcb064_1

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Prepare the journal entry for the payment as of January 2, 20--.

If an amount box does not require an entry, leave it blank.

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ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-- Jan. 2

	blank	blank	- Select -	- Select -	1
2	blank

	blank	blank	- Select -	- Select -	2
3	blank	blank	blank	blank	blank	blank	3

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2. Assume that Specialty Manufacturing's actual payroll for the year is $456,000. Calculate the total insurance premium owed. $fill in the blank ba679dff904ffb2_1

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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.

If an amount box does not require an entry, leave it blank.

Page: blank

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-- Dec. 31

	blank	blank	- Select -	- Select -	1
2	blank

	blank	blank	- Select -	- Select -	2
3	blank	blank	blank	blank	blank	blank	3