Compute and Record Workers' Compensation Insurance Premiums for Beverly Manufacturing

question 24

Essay

Compute and record workers' compensation insurance premiums for Beverly Manufacturing as follows:
1. The firm estimates that its office employees will earn $40,000 next year and its factory employees will earn $172,000. The firm pays the following rates for workers' compensation insurance: $0.40 per $100 of wages for the office employees and $3.50 per $100 of wages for the factory employees. Compute the estimated premiums for 2013. On page 9 of a general journal, record the payment of the estimated premium. Date the entry January 12, 2013.
2. On January 3, 2014, an audit of the firm's payroll records for 2013 showed that the firm had actually paid wages of $48,000 to its office employees and $165,000 to its factory employees. Compute the actual premium for the year and the balance due the insurance company or the credit due the firm. In the general journal, record the entry to adjust the Workers' Compensation Insurance Expense as of the end of 2013. Date the entry December 31, 2013.

---

Definitions:

Cognitive Health

Refers to the ability to think, learn, and remember clearly, acting as a crucial aspect of overall brain health and functionality.

Physical Exercise

Any bodily activity that enhances or maintains physical fitness, overall health, and wellness.

Cigarette Smoking

The act of inhaling and exhaling the smoke of tobacco or a similar substance, which is often rolled into a small paper cylinder.

Instinctual

Instinctual refers to behaviors and responses that are innate or inherent to an organism, not learned through experience.