Computing workers’ compensation insurance premiums
A1 Construction began operations on January 1, 2009. The company pays workers’ compensation insurance premiums for its employees. The company’s accountant assembled the data below for 2009:
1. Compute A1 Construction’s estimated workers’ compensation insurance premium for 2009.
2. Prepare the general journal entry to record A1 Construction’s payment of its 2009 workers’ compensation insurance premium on January 9, 2009.
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