Great Manufacturing Company received and paid a premium notice on January 2 for workers€™ compensation insurance stating the rates for the New Year. Estimated employees€™ earnings for the year are as follows:

At the end of the year, the exact figures for the payroll are as follows:

a. Record the entry in general journal form for the payment on January 2 of the estimated premium.
b. Record the adjusting entries on December 31 for the insurance expired and for the additionalpremium.

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Estimated Waes Rate per Hundred Classification Office clerical Warehouse work Manufacturing and Salaries 92,000 29,000 264,000 (Percent) 0.11 0.92 2.20 Estimated Premium $ 101.20 266.80 5,808.00 $6,176.00 Actual Wages and Rate per Hundred Classification Office clerical Warehouse work Manufacturing Salaries $93,000 30,000 267,000 (Percent) 0.11 0.92 2.20 Exact Premium 102.30 276.00 5,874.00 $6,252.30