Willamette Manufacturing estimated that its total payroll for the coming year would be $670,000. The workers' compensation insurance premium rate is 0.3%.Required:1.  Calculate the estimated workers' compensation insurance premium.$Prepare the journal entry for the payment as of January 2, 20--.Page:   DATEACCOUNT TITLEDOC. NO.POST. REF.DEBITCREDIT 120--Jan. 2     12      23 Paid estimated workers' compensation insurance premium    32.  Assume that Willamette Manufacturing's actual payroll for the year was $694,000. Calculate the total insurance premium owed.$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.Page:   DATEACCOUNT TITLEDOC. NO.POST. REF.DEBITCREDIT 120--Dec. 31     12      23 Adjustment for insurance premium    33.  Assume instead that Willamette Manufacturing's actual payroll for the year was $660,000. Prepare a journal entry as of December 31, 20--, for the total amount that should be refunded. The refund will not be received until the next year.Page:   DATEACCOUNT TITLEDOC. NO.POST. REF.DEBITCREDIT 120--Dec. 31     12      23 Adjustment for insurance premium    3

Question
Asked Mar 24, 2020
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Willamette Manufacturing estimated that its total payroll for the coming year would be $670,000. The workers' compensation insurance premium rate is 0.3%.

Required:

1.  Calculate the estimated workers' compensation insurance premium.
$

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

Page:  
  DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
DEBIT CREDIT  
1 20--
Jan. 2
          1
2             2
3   Paid estimated workers' compensation insurance premium         3

2.  Assume that Willamette Manufacturing's actual payroll for the year was $694,000. Calculate the total insurance premium owed.
$

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.

Page:  
  DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
DEBIT CREDIT  
1 20--
Dec. 31
          1
2             2
3   Adjustment for insurance premium         3

3.  Assume instead that Willamette Manufacturing's actual payroll for the year was $660,000. Prepare a journal entry as of December 31, 20--, for the total amount that should be refunded. The refund will not be received until the next year.

Page:  
  DATE ACCOUNT TITLE DOC.
NO.
POST.
REF.
DEBIT CREDIT  
1 20--
Dec. 31
          1
2             2
3   Adjustment for insurance premium         3
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Expert Answer

Step 1

Accounting homework question answer, step 1, image 1

 

The insurance expense for estimated compensation of $670,000 is $2,010 computed by multiplying estimated compensation, $670,000 with the premium percentage of 0.30%.

The insurance expense for estimated compensation of $690,000 is $2,082 computed by multiplying estimated compensation, $694,000 with a premium percentage of 0.30%.

The insurance expense for estimated compensation of $660,000 is $1,980 computed by multiplying estimated compensation, $660,000 with a premium percentage of 0.30%.

Step 2

Accounting homework question answer, step 2, image 1

 

In the above entry, the workmen compensation insurance premium account of $2,010 is debited and a bank account of $2,010 is credited to record the estimated compensation insurance premium.

 

Step 3

Accounting homework question answer, step 3, image 1

 

In the above entry, there is a debit to workmen compensation insurance premium as an additional compensation obtained by reducing insurance expense $2,010 from $2,082 and a credit to Workmen compensation insurance payable to record the insurance premium payab...

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