Sunny Hills Farm estimated its payroll for the coming year to be $102,000.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 Sunny Hills Farm's actual payroll for the year was $105,000.Calculate the additional premium owed for 20--.Record the adjustment needed at December 31,20--.The actual payment of the additional insurance will not take place until January of the following year.

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The Answer of Sunny Hills Farm estimated its payroll for the coming year to be $102,000.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 Sunny Hills Farm's actual payroll for the year was $105,000.Calculate the additional premium owed for 20--.Record the adjustment needed at December 31,20--.The actual payment of the additional insurance will not take place until January of the following year.

Sunny Hills Farm Estimated Its Payroll for the Coming Year