RWL Limited provides a long-term disability program for its employees through an insurance company. For an annual premium of $20,000, the insurance company is responsible for providing long-term salary continuation to disabled employees 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 of the total cost of $20,000 for the year. In late October 2020, Tina Hurst, an employee earning $4,500 per month, was injured and was not expected to be able to return to work for at least one year. 

Instructions 

Prepare all entries made by RWL in 2020 in connection with the benefit plan, as well as any entries required in 2021.