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 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 2017, 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 2017 in connection with the benefit plan, as well as any entries required in 2018.