WORKERS’ COMPENSATION INSURANCE AND ADJUSTMENT Willamette Manufacturing estimated that its total payroll for the coming year would be $650,000. The workers’ compensation insurance premium rate is 03%. REQUIRED 1. Calculate the estimated workers’ compensation insurance premium and prepare the journal entry for the payment as of January 2, 20--. 2. Assume that Willamette Manufacturing’s actual payroll for the year was $672,000. Calculate the total insurance premium owed and 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. 3. Assume instead that Willamette Manufacturing’s actual payroll for the year was $634,000. 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.

BuyFind

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160
BuyFind

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160

Solutions

Chapter
Section
Chapter 9, Problem 9SPA
Textbook Problem

WORKERS’ COMPENSATION INSURANCE AND ADJUSTMENT Willamette Manufacturing estimated that its total payroll for the coming year would be $650,000. The workers’ compensation insurance premium rate is 03%.

REQUIRED

  1. 1. Calculate the estimated workers’ compensation insurance premium and prepare the journal entry for the payment as of January 2, 20--.
  2. 2. Assume that Willamette Manufacturing’s actual payroll for the year was $672,000. Calculate the total insurance premium owed and 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.
  3. 3. Assume instead that Willamette Manufacturing’s actual payroll for the year was $634,000. 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.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 9 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 9 - Total earnings for the employees of Garys Grill...Ch. 9 - Lius Lounge had the following payroll taxes...Ch. 9 - ARC Co. owes the following amounts for payroll...Ch. 9 - LC Co. estimates that its total payroll for the...Ch. 9 - Why do employer payroll taxes represent an...Ch. 9 - At what rate and on what earnings base is the...Ch. 9 - What is the purpose of the FUTA tax, and who must...Ch. 9 - What is the purpose of the state unemployment tax,...Ch. 9 - What accounts are affected when employer payroll...Ch. 9 - Identify all items that are debited or credited to...Ch. 9 - Explain why an employee whose gross salary is...Ch. 9 - What is the purpose of the EFTPS?Ch. 9 - What is the purpose of Form 941, Employers...Ch. 9 - What is the purpose of Form 940, Employers Annual...Ch. 9 - What information appears on Form W-2, the...Ch. 9 - What is the purpose of Form I-9, Employment...Ch. 9 - What is the purpose of workers compensation...Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION OF TAXABLE EARNINGS AND EMPLOYER...Ch. 9 - TOTAL COST OF EMPLOYEE Mandy Feng employs Jay...Ch. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - WORKERS COMPENSATION INSURANCE AND ADJUSTMENT...Ch. 9 - CALCULATING PAYROLL TAXES EXPENSE AND PREPARING...Ch. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Cascade...Ch. 9 - WORKERS COMPENSATION INSURANCE AND ADJUSTMENT...Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION OF TAXABLE EARNINGS AND EMPLOYER...Ch. 9 - TOTAL COST OF EMPLOYEE B. F. Goodson employs...Ch. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - WORKERS COMPENSATION INSURANCE AND ADJUSTMENT...Ch. 9 - CALCULATING PAYROLL TAXES EXPENSE AND PREPARING...Ch. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Oxford...Ch. 9 - WORKERS COMPENSATION INSURANCE AND ADJUSTMENT...Ch. 9 - The director of the art department at an...Ch. 9 - Bob Estes works at Cliffrock Company in the...Ch. 9 - The totals line from Nix Companys payroll register...Ch. 9 - Payrex Co. has six employees. All are paid on a...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Explain how a trial balance and a balance sheet differ.

College Accounting (Book Only): A Career Approach

What is Software-as-a-Service (SaaS)?

Accounting Information Systems

BOND VALUATION Callaghan Motors bonds have 10 years remaining to maturity. Interest is paid annually, they have...

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

What is an overhead consumption ratio?

Cornerstones of Cost Management (Cornerstones Series)