Patrick\'s Car Wash estimated payroll for the year at $80,000. The worker\'s com
ID: 2468919 • Letter: P
Question
Patrick's Car Wash estimated payroll for the year at $80,000. The worker's compensation premium rate is .3%. assume the actual payroll at the end of the year is $82,000. What journal entry would be required on December 31st to record the appropriate adjustment? Any underpayment or overpayment will be received or paid in the next year.
Debit Workers Compensation Inurance Expense $6; Credit Cash $6
Debit Workers Compensation Insurance Expense $2000; Credit Workers Compensation Insurance Payable $2,000Explanation / Answer
Compensation expense provide d 80,000 *.3% = 240
Compensation expense required 82,000*.3% = 246
Underpayment =$6
Debit Workers Compensation Insurance Expense $6; Credit Workers Compensation Insurance Payable $6
Compensation expense provide d 80,000 *.3% = 240
Compensation expense required 82,000*.3% = 246
Underpayment =$6
Debit Workers Compensation Insurance Expense $6; Credit Workers Compensation Insurance Payable $6