The following information relates to Ponte Manufacturing

Company s workers compensation

The following information relates to Ponte Manufacturing Company's workers' compensation
insurance premiums for 2019. On January 15, 2019, the company estimated its premium for
workers' compensation insurance for the year on the basis of that data.Work Classification
........Amount of Estimated ......Wages Insurance RatesOffice work ....................................$
64,000 .....................$0.30/$100Shop work .......................................308,000
.....................$6.00/$100INSTRUCTIONS1. Compute the estimated premiums.2. Record in
general journal form payment of the estimated premium on January 15, 2019. Use 8 as the
page number.3. On January 4, 2020, an audit of the firm's payroll records showed that it had
actually paid wages of $69,960 to its office employees and wages of $315,320 to its shop
employees.Compute the actual premium for the year and the balance due the insurance
company or the credit due the firm.4. Prepare the general journal entry on December 31, 2019,
to adjust the Workers' Compensation Insurance Expense account. Use 98 as the page
number.Analyze: If all wages were attributable to shop employees, what premium estimate
would have been calculated and recorded on January 15, 2019?View Solution: The following
information relates to Ponte Manufacturing Company s workers compensation
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