Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000.Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter.
Required:
1.Calculate the estimated cost of workers' compensation insurance for the year.
2.Show the journal entry for the first quarterly payment on January 2,20--.
3.Assume Ryan's actual payroll for the year was $89,000.Calculate the additional premium owed for 20--.Record the adjustment needed on December 31,20--.The actual payment of the additional insurance premium will not take place until January of the following year.

Question

Quizplus · Accepted Answer

The Answer of Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000.Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter.
Required:
1.Calculate the estimated cost of workers' compensation insurance for the year.
2.Show the journal entry for the first quarterly payment on January 2,20--.
3.Assume Ryan's actual payroll for the year was $89,000.Calculate the additional premium owed for 20--.Record the adjustment needed on December 31,20--.The actual payment of the additional insurance premium will not take place until January of the following year.

Ryan's Sparkling Jewels Estimated Its Payroll for the Coming Year