BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

LC Co. estimates that its total payroll for the year will be $260,000. LC’s workers’ compensation insurance premium rate is 0.22%. Calculate LC’s estimated workers’ compensation insurance premium and prepare the journal entry for the payment of this amount.

The answers to the Self-Study Test Questions are at the end of the chapter (pages 351–352).

To determine

Calculate Person LC’s estimated workers’ compensation insurance premium and prepare the journal entry for the payment of this amount.

Explanation

Workmen’s compensation insurance:

Workmen’s compensation insurance is provided to employees as a compensation for the illness or injury suffered by them during the work. The employer pays the full Workmen’s compensation insurance amount to the workers.

Calculate the estimated workers’ compensation insurance premium.

Workmen's Compensation Insurance Expense }=(Total payroll for the coming year)×(Workmen's Compensation Insurance premium rate )=$260,000×0.22%=$572

Therefore, the estimated workers’ compensation insurance premium is $572

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

In what ways is economics a science?

Essentials of Economics (MindTap Course List)

What is the purpose of the payroll register?

College Accounting (Book Only): A Career Approach

To provide a starting point for gauging a companys relative valuation, analysts often look at a companys price-...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)