Question

Question: Noura Company offers an annual bonus to employees if the company meets certain net income goals.

Prepare the journal entry to record a $15,000 bonus owed to its workers (to be shared equally) at calendar

year-end.

Answer 1

Step 1: Definition of the bonus payable

Bonus payable is the bonus that is due but not paid. This is the amount of the bonus that is not paid to the employees at the end of the year.

Step 2: Journal entry of Bonus payable

Date	Particulars	Debit	Credit
	Employees Bonus Expense	$15,000
	Bonus Payable		$15,000
	(To record the bonus expense)

 

This entry is made to record the bonus expense of the company. The bonus expense of the company is $15,000

Answer:

The employee’s expense account is debited with $15,000, and the bonus payable account is credited with $15,000.