Calculate estimated cost of workers compensation insurance

Assignment Help Financial Accounting

Reference no: EM132745342

Question - Sunny Hills Farm estimated its payroll for the coming year to be $102,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter.

Required -

1. Calculate the estimated cost of workers' compensation insurance for the year.

2. Show the journal entry for the first quarterly payment on January 2, 20--.

3. Assume Sunny Hills Farm's actual payroll for the year was $105,000. Calculate the additional premium owed for 20--. Record the adjustment needed at December 31, 20--. The actual payment of the additional insurance will not take place until January of the following year.

Reference no: EM132745342

Questions Cloud

What is the cost of goods sold for julia and company : The following information pertains to Julia & Company: What is the cost of goods sold for Julia & Company assuming it uses LIFO

Visual impact analysis : In this module, you are to answer the question, what is a visual impact and what is the definition of aesthetics? Also, why is it important to have a VIA?

What is the pi of a project : Gold Mining's cost of capital is 7.92 percent. What is the PI of a project if the initial costs are $1,893,116 and the project life is estimated as 5 years

How many shares do you own in the end : You bought 4440 Dumpster Fire Inc. shares at a price of $1.89. How many shares do you own in the end? What was your effective annual return

Calculate estimated cost of workers compensation insurance : Sunny Hills Farm estimated its payroll for the coming year to be $102,000. Calculate the estimated cost of workers' compensation insurance for the year

Calculate the disbursement float : ABC Corp. writes checks totaling P30,000. These checks clear in 7 days. Simultaneously, the firm receives P17,000. Calculate the disbursement float

Handling an angry email : Compare and contrast spoken versus written communication and assess the most effective communication methods to handle an emotionally charged email.

What is the weighted average number of shares outstanding : The company issued 720,000 ordinary shares on Sep 1, 2020. What is the weighted average number of shares outstanding in 2020

Explain differences between the coupon and discount rate : Explain the differences between the coupon rate and the discount rate. How are they related to each other? What are determinants of a bond's value

User Account

All Pages