LooseLeaf for College Accounting: A Contemporary Approach
LooseLeaf for College Accounting: A Contemporary Approach
4th Edition
ISBN: 9781259995057
Author: M. David Haddock Jr. Professor, John Ellis Price, Michael Farina
Publisher: McGraw-Hill Education
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Chapter 11, Problem 8E
To determine

Calculate the estimated amount of worker’s compensation insurance premium for each group of employees.

To determine

Calculate the total estimated amount of worker’s compensation insurance premium for next year.

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Compute and record workers' compensation insurance premiums for Fairlawn Manufacturing as follows: 1. The firm estimates that its office employees will earn $57,000 next year and its factory employees will earn $184,000. The firm pays the following rates for workers' compensation insurance: $0.50 per $100 of wages for the office employees and $4.00 per $100 of wages for the factory employees. Compute the estimated premiums for 20X1. In the general journal, record the payment of the estimated premium. Date the entry as January 12, 20X1. 2. On January 3, 20X2, an audit of the firm's payroll records for 20X1 showed that the firm had actually paid wages of $59,000 to its office employees and $187,000 to its factory employees. Compute the actual premium for the year and the balance due to the insurance company or the credit due to the firm. In the general journal, record the entry to adjust the Workers' Compensation Insurance Expense as of the end of 20X1. Date the entry December 31, 20X.…
ruth lockwood earns $2,917 a month as a supervisor for Acme steel. Her group medical coverage costs $3,120 per year. The company pays 75 percent of the cost of group insurance. How much deducted each month from her paycheck for medical insuraance?
Wharfside Manufacturing estimates that its office employees will earn $56,000 next year and its factory employees will earn $274,00O. The firm pays the following rates for workers' compensation insurance: $0.40 per $100 of wages for the office employees and $4.40 per $100 of wages for the factory employees. Compute the estimated premiums for the office and factory employees. Office employees Factory employees 913 MA 7 18

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LooseLeaf for College Accounting: A Contemporary Approach

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