Question: RWL Limited provides a long term disability program for its employees

RWL Limited provides a long-term disability program for its employees through an insurance company. For an annual premium of $18,000, the insurance company is responsible for providing salary continuation to disabled employees on a long-term basis after a three-month waiting period. During the waiting period, RWL continues to pay the
employee at full salary. The employees contribute to the cost of this plan through regular payroll deductions that amount to $6,000 for the year. In late October 2011, Tony Hurst, a department manager earning $5,400 per month, was injured and was not expected to be able to return to work for at least one year.
Prepare all entries made by RWL in 2011 in connection with the benefit plan, as well as any entries required in 2012.

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  • CreatedAugust 23, 2015
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